Slight modification to the above RIG --
Intel Core i3 2100 ~6200/- [the overall gaming performance of the Sandy-bridge processors Core i5 and Core i3 are similar enough to warrant purchase of the former until you plan to do some heavy work on your PC -->
http://www.anandtech.com/bench/Product/289?vs=363,
check the gaming benches the Core i3 is not wanting in performance]
ASUS / Gigabyte H61 based motherboard ~3500/-
Corsair ValueRAM 4GB ~1200/-
Seasonic S12II 430W ~3100/-
AMD HD 5770 ~6000/- [the price performance of the HD 5770 is better than the HD 6770 as well as they are the same card, over-clock the HD 5770 and you'll be comfortable for most games for this year]
Dell IN2030M ~6300/- [I think a 17" monitor is too small for gaming these days as well as I doubt they are widescreen, so the games will conflict with the low resolution]
NZXT Gamma ~2500/-
OR Cooler Master eLite 370 ~1900/- [a
good cabinet with airflow is better than a PC choked with dust and heating up to god-forsaken levels, my personal recommend will be that OP goes with the Gamma]
LG / Samsung OEM DVD drives ~1100/-
If possible, get a H67 motherboard #amithkallupalam, preferably the Intel DH67-BL ~5800/-
OR MSi H67MA-E35 ~4800/- [under budgetary constraints],
also as usual I reiterate that getting 1600MHz RAM in conjunction with the H67 chipset will be a better deal, but I leave the end decision with you OP. Cheers!!