Well, I don't know what the prices are like in Mumbai, but in the USA it would be something like this:
$190 - Intel Q6600 or E8400
$22 - Freezer Pro 7 CPU cooler
$85-100 - P35 motherboard
$25-35 - 2gb DDR2 RAM
$50 - Corsair 450vx PSU (or similar)
$50+ - case of your taste with at least intake and exhaust fans
$25-30 - DVD/RW
$50+ - 250gb or larger SATA HD
I think the e7200 is a better choice than the e8400, cos it's $50 cheaper (at least in australia), and can overclock just as well, and $50 is just not worth it for the sake of a tiny boost from the increased cache. Performance wise, it's MUCH wiser to spend that extra cash on the video card when you're building a gaming computer, as the gpu is far more important than cpu in this case. You should be able to get 4GHz+ easily with either cpu.
Otherwise that's a decent system he's suggested for you. (I'd say wait ~2 weeks and see what ATi launches, and what impact that has on prices of existing cards before purchasing a video card).
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