Anchor tag is important in SEO because it is a hyperlinked clickable text which leads user to a different webpage/website when click to it. Anchor tag utilizes keywords for hyperlinking purpose.
The link to a particular word which is taking to the user to another is called hyperlink. By using this we can insert keywords and it is also used as a back link.
An anchor may be a piece of text that marks the start and/or the tip of a machine-readable text link. The text between the gap tag and therefore the closing tag is either the beginning or destination (or both) of a link.
Anchor text is the visible characters and words that hyperlinks display when linking to another document or location on the web. In SEO, it is seo friendly anchor text and relevant to the target page.