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I want to know how the subscribers are added to the All subscribers list. I know contacts are added in the contact builder using an object or API. But how do we know which contacts should be added to Email studio.

Thanks, Nikhila

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Check out this trailhead module (specifically Contacts & Subscribers section):

 - A contact is a person you send messages to through any marketing channel. A contact typically appears in the All Contacts section, but a contact record can also appear in other locations.
 - A subscriber is a person who opted to receive communications or belongs to a particular channel. A subscriber lives in the individual studios. Subscribers can be imported or created manually and are stored in data extensions.

Subscribers can be created in a list or data extension and subscriber data can be loaded using import wizard, automation studio import or API. Following paragraph (from this ref) should answer your question.

The All Subscribers list is considered the master list of records for the Marketing Cloud Email Studio account. Every subscriber in your account appears in the All Subscribers list. Subscribers added to a subscriber list join the All Subscribers list at the same time. Subscribers stored on data extensions join the All Subscribers list when you send your first message to that subscriber. If a subscriber is unsubscribed in the All Subscribers list, the subscriber is unsubscribed from all lists and groups. When a subscriber is set back to active on the All Subscribers list, the subscriber must also opt in for any other list and group separately. A subscriber can be unsubscribed on lists and groups and be active on the All Subscribers lists.

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