I just got a new PC with a 1TB HDD. I do not know how to make partitions in the HDD and dont know the benifits of the same. Hence havent made any.
So I want to know if it is essential to make partitions in the drive?
Technically, even if you use the whole disk space a single unit, that's still a partition. But let's assume that you're asking about dividing your HDD into more than one partition.
Again, strictly speaking from a technical point of view, it's not essential to have more than one partition, but it's best to have at least two partitions - one for the OS and installed software, and the other for data. This reduces the chance of losing everything in the event of a major crash or a bad virus infection.
Personally, I like to have several partitions. At the moment, I have 8 partitions, one each for the OS, general documents, games, music & videos, photos, vital professional data, etc etc. This is probably more than most people have. It's really a matter of personal preference.
One thing I do for myself and for all of my clients' computers is to have "My Documents" in a non-OS partition. This eliminates the need to back up important files when it becomes necessary to re-install the OS.