I am exploring the options does NX Open API toolkit does has XML parsing methoes with in the capability or we need to depend on external tools to plugin into NX Development code.
.NET C# or VB has the framework capability from Microsoft with in the OOTB.
What about the C++?
NXOpen API only covers NX related features, anything that is freely available for your development language or is part of it, is not duplicated in NXOpen and will never be.
(Never invent the wheel twice, but focus on the important things)
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The NX installation comes with the very good free Xerces XML library (dll in UGII or respectively in NXBIN), but since there are are no headers and libs it may be easier to build your own version from scratch.
For simple parse/edit tasks Xerces may be somewhat more complicated to use than the .net or java framework xml libraries but Xerces is powerfull and mature.