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Also tried with ztsd compressCodec as well. Its still not working.

"ioConfig": {
      "type": "hadoop",
      "inputSpec": {
        "type": "static",
        "inputFormat": "org.apache.druid.data.input.parquet.DruidParquetInputFormat",
        "paths": "<path>",
        "compressCodec": "zstd"
      }
    },

Should we install any packages on druid servers to be able to read these data?

I think

<http://org.apache.hadoop.io|org.apache.hadoop.io>.compress.ZStandardCodec

is available from hadoop 2.9 onwards. we're currently using 2.8.2 We haven't been upgrading it since we more-or-less decided to keep it frozen in time, as people gradually move from hadoop onto native ingestion or MSQ perhaps one of those (native or MSQ) would work for you too or, you could try building a version of Druid with a later Hadoop.