why to use nested classes in java code example

Example 1: Nested classes in java

// example on method local inner class in java.
class Outer
{
   // outer class instance method
   void display()
   {
      int num = 96;
      // method-local inner class
      class MethodLocalInner
      {
         public void show()
         {
            System.out.println("in method local inner class " + num);
         }
      } // end of inner class
      // access method local inner class
      MethodLocalInner objInner = new MethodLocalInner();
      objInner.show();
   }
   public static void main(String[] args)
   {
      Outer objOuter = new Outer();
      objOuter.display();
   }
}

Example 2: Nested classes in java

// example on inner class in java
class OuterDemo
{
   int num;
   // inner class
   private class InnerDemo
   {
      public void display()
      {
         System.out.println("inner class");
      }
   }
   // access inner class from method within
   void printInner()
   {
      InnerDemo objInner = new InnerDemo();
      objInner.display();
   }
}
public class InnerClassExample
{
   public static void main(String[] args)
   {
      OuterDemo objOuter = new OuterDemo();
      objOuter.printInner();
   }
}

Example 3: use of nested class in java

In Java, it is possible to define a class within another class, such 
classes are known as nested classes. They enable you to logically group 
classes that are only used in one place, thus this increases the use of 
encapsulation, and creates more readable and maintainable code.