Like I asked, is the 7000 INR is all you have to spend? Or is it just for the CPU?
I'm asking this because you won't be able to re-use your current motherboard. You'll have to buy a new motherboard - with new memory due to the fact that it's a different socket type (different pin layout).
If 7000 INR is all you have to spend on everything (motherboard, ram, cpu), you're not going to get something that can handle decent framerates. The simple solution here is - save up more. You're not going to get anything that'll be a noticeable difference in terms of performance.
If 7000 INR is what you have to spend on your CPU only - you can grab a i3 2130 which should run things at a fairly decent level. Based on your budget for your CPU - I assume you aren't going to grab anything like a GTX680 so bottlenecking shouldn't be an issue. This is the way to go - benchmarks show that the i3 2130 is a highly capable cpu for mid-range graphics cards (e.g. 6870, 6850, 6770, etc).
I just saw that you wrote your PSU is Zebronics. CHANGE IT ASAP. Unless you want to see your new parts turn into fireworks - change it. Zebronics PSU's are 'Tier 5' PSUs. These are known to cause problems, catch fire, etc. Long story short - they're bad.
A PSU is something you should never go cheap on. A bad PSU can take down an entire rig with it. I had a Q9950 (friggin expensive at the time) rig once upon a time - I needed a cheap PSU to test the RAM, only for a short while. I bought a chinese $10 (1145 inr) PSU to test it and on first boot - the thing killed itself along with the entire system. One of the saddest moments of my life (i'm pretty sad, i know lol)
Again, "a PSU is something you should never go cheap on."