What is the significance of adding the enctype="multipart/form-data" attribute to the form tag in PHP file uploads?

Adding the enctype="multipart/form-data" attribute to the form tag in PHP file uploads is significant because it allows files to be uploaded through the form. Without this attribute, the files will not be properly transmitted to the server for processing.

<form action="upload.php" method="post" enctype="multipart/form-data">
    <input type="file" name="file">
    <input type="submit" value="Upload">
</form>