OP, you have reached that time to buy a new PC as the standard recommendation if trying to be an up to speed gamer in 2013 and a few years beyond.
It's a good time though, you can get a pretty bitchin' rig for under a grand total if you DIY.
Motherboard, CPU+3rd party heatsink/fan combo, video card, RAM, PSU, Case, SSD, 2TB HD, mouse, kb, and DVD drive.
Sample of what that might look like:
AMD FX-8320, Sapphire Radeon HD 7870 GHz Edition, Azza CSAZ-203 (Black) - System Build - PCPartPicker
Having said that.... I know you are in India and quite possibly not able to get that stuff, but like others have said, you are in bottleneck HELL and the way out is really a new system, you can go lower than the one I spec'd out but that is a good rig build for pushing it to fit under $1000 USD.
What's with all the 3gigs of RAM on India based user PC's? None of ya'll with that have dual channel architecture being taken advantage of.