This is solved with the help of a comment here
they suggested me to put my ADSL router IP as DNS IP in virtual network editor in vmnet8--->NAT settings--->DNS settings
here is a screenshot how DNS setting looked previously in virtual network editor vmnet8---NAT ---settings--->DNS
after that comment on serverfault I changed the setting as below 192.168.1.1 is my ADSL router IP
now I did a nslookup from within virtual machine
ipconfig on host OS shows following
the DNS server in the above Ipconfig output is not 192.168.1.1 it is automatically given by ADSL router but for VMware environment
I had to set it, and now my virtual machine has internet connectivity.
Here is a screenshot
So it is working now. Thanks for your suggestions as your suggestion for
nslookup helped to dig this further.Let me know if any thing else you want to suggest.
But nslookup from within the virtual machine still fails I don't know why. The screenshot I have attached for nslookup from vm.