Go Intel !!!!
Save yourself some money and get the P6 1.6a (w/ 512 K Cache) and overclock it a bit. Most 1.6a will go upto 2.13 Ghz easily. Make sure that you get the one with 512k cache (northwood) version. Even retail (stock) cooling that will come with your retail box will be more than enough so that you dont have to spend extra money on that.
Get a nice motherboard though, even if you have to spend extra $50 (Rs. 2200). Get brand name like Asus or Epox or Abit. Regarding the video card, why do you want to waste that much money for a GF4 if you are going to run your games at 800x600 ? A GF3 should be sufficient for you and you can easily save ~$100 (~Rs. 5000) on that.
Since you are in India, you will have to invest some money in decent case cooling. I think that the cutoff for P4 is 66C and so your case should be at a max of around 40C. Since the room temp over there are normally around 40c in the summer, you will have to make sure that your case is running cool. Thats where Athlons are better since their cutoff is much higher (~90s, correct me someone if i am wrong here).
Also, dont skim on the Power supply, get like atleast a 400w Power supply and make sure that it is rated for atleast 28A on the 3.3v rail.
if all goes well, you will have a good decent system up and running.
oh yeah, just for your info, i have my P4 1.6a overclocked to 2.56 Ghz right now