geniusrohit, please have a look at the attached screenshot. Is this the problem you see (dotted circles, on the right side of the screenshot) and correct on the left side?
If yes, this seems to be a rendering problem. Right side is firefox, left side is sumatraPDF displaying the same file.

This might be of interest concerning the dotted circles:
http://www.garretwilson.com/blog/2013/06/29/browser-devanagari-support-subtleties.xhtml

In Dropbox folder : https://www.dropbox.com/sh/mc49f1v6tfz7c62/AAAYYxABGo9T4XHHHq89gHrHa?dl=0
I have added one file with name "print_version_rendered_correctly.pdf" its print version exported from limesurvey which is visible correctly.
Unlike quexml pdf or images you have shown this file shows text exactly it supposed to be seen.

I am not sure if its client side rendering problem or way limesurvey is generating the pdf during quexml export.

Oh yes, I see the problem.
Unfortunately this seems to be a known issue/limitation of tcpdf (with thich limesurvey renders pdf). After trying a lot of different fonts, I found this blog post:
http://rrbits.com/epb/2013/02/23/tcpdf-indic-script-support/

Yup seems relevant to concern I have raised. Can you suggest any workaround? I need to basically achieve following and for that I need PDF

1. I will export this queXML format
2. Print the Forms with PDF generated to be filled manually
3. Process the scanned forms thru queXF to generate survey results.

If I can not have readable print of PDF generated matching queXML file then queXF will not able to process it and I am stuck! As its limitation of tcpdf I understand it will be difficult to fix but can we have any other workaround or way to generate pdf by passing quexml file?

Thanks a lot for all this research so far!

Indeed difficult. You may try to correct the misspelled text in a PDF editor and pass this form to your participants.
If you manage without changing the layout of the form (eg. position of the tick-boxes on the form) queXF should still be able to read them.