Hi Ananth, the only limit is to the folder path, which is set at 256 characters by Windows. The folder path for a file includes what folder it is in, as well as its file name and extension
For example if your vault view is located at the root of the C drive, and your vault is called PDM; if you then add a file at the root of the vault called Part1.SLDPRT, then the total folder path for that file is C:\PDM\Part1.SLDPRT which is a total of 19 characters.
So the more subfolders etc you have in your vault, the longer your folder path becomes. Also a good tip is NOT to keep your vault view on your desktop, but at the root (or as close to the root) of a drive as possible. If you place a vault view on your desktop, then even before you add any files, your folder path is already something like C:\Users\<username>Desktop
Hope this makes sense.
Thanks Prasad for the clarification.