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It's an off-page activity in SEO, done to build links. Relevant directory submission can help you to get good results.

Directory Submission is a off-page process one of the backlink submission. its will increase domain authority, page authority, SERP, Website Traffic etc

Directory submission is an off-page optimization activity. It involves submission of your site to a specific category of a web directory, e.g. if you have a tutorial website then you are supposed to submit your site in the education category of a web directory. Some directories are free and some charges a fee to list your site in the relevant categories.
There are plenty of benefits of having your site listed in popular directories. Some of the benefits are listed below;
1) Fast indexing: The search engines can easily find your site for crawling and indexing.

2) Higher link popularity: You get two additional links; contextual category link and unique directory listing link.

3) Higher page rank: Quality directories are used in Google Algorithm to calculate Google PageRank.

4) Social Media Sharing: Most of the popular directories have social media sharing buttons. It allows users to share your link with other users.

5) More traffic: The heavy traffic of popular directories can be diverted to your site.
Brand awareness: Your brand gets more exposure that helps increase brand awareness.

nihitthakkar,
Is your doubt clear about the directory submission? do you need to know anything else?