<ul><li>Local state is managed with useState, useReducer, or useRef and is ideal for UI interactions or component-specific state.</li><li>Global state is used when data needs to be shared across multiple components. Tools like Context API (lightweight), Zustand or Jotai (modern alternatives), Redux or Recoil (complex app needs) can be chosen.</li><li>Choosing the right hook for the job is important. useState is simple and effective for small pieces of UI state, useReducer is better for complex state logic or multiple transitions, and useRef is great for tracking values without causing re-renders.</li><li>Keep state close to where it’s used to minimize unnecessary prop-drilling and improve readability and component encapsulation.</li></ul>

🧠 Best Practices for Managing State in React

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