Colab research team has a notebook for helping you out.
Still, in short, if you are dealing with a zip file, like for me it is mostly thousands of images and I want to store them in a folder within drive then do this --
!unzip -u "/content/drive/My Drive/folder/example.zip" -d "/content/drive/My Drive/folder/NewFolder"
-u
part controls extraction only if new/necessary. It is important if suddenly you lose connection or hardware switches off.
-d
creates the directory and extracted files are stored there.
Of course before doing this you need to mount your drive
from google.colab import drive
drive.mount('/content/drive')
I hope this helps! Cheers!!