When responding to an issue which is common , we would like to use template with a standard response. Does Jira has the ability to store these templates and use them when responding to an email through Jira with template rather than typing same thing again and again.
I think you are searching for "canned responses".
The Feature is released in Service Desk 3.7:
https://confluence.atlassian.com/servicedesk/jira-service-desk-3-8-x-release-notes-936509559.html
Maybe this Add-On could be helpful:
Yes, this is cool, exactly what I needed. Thanks.
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