It is also known as index area.
There is logical layer/virtual layer in git between working directory and local repository.
Working Directory Staging Area Local Repository
We cannot commit the files of working directory directly. First we have to add to the
staging area and then we have to commit.
This staging area is helpful to double-check/cross-check our changes before commit.
This type of layer is not available in other Version Control Systsem Tools like CVS, SVN etc
Git stores files in repository in some hash form, which saves space.
GIT will uses internally snapshot mechanism for this. All these conversions and taking
snapshots of our data will be happened in staging area before commit.
Eg: If a sample repository takes around 12 GB space in SVN where as in GIT it takes hardly
420 MB.
Hence Staging Area is the most important Strength of GIT.