The anchor tag is used to make click-able text written on a hyperlink, i.e., it is a clickable text in a hyperlink. It enhances the user experience as it takes the users directly to a specific area of a webpage. They are not required to scroll down the information to find a particular section. So, it is a way to improve navigation.
It also enables webmasters to keep things in order as there is no need of creating different web pages or splitting up a document. Google also sends users to a specific part of your page using this tag. You can attach anchor tag to a word or a phrase. It takes the reader down to a different section of the page instead of another page. When you use this tag, you create a unique URL on the same page.