I started this thread and am back with an update :)
It seems like my site is recovering. Google has started sending me traffic once again: [i.imgur.com
My domain was registered on November 2013, so maybe my domain was in some sort of sandbox. I am not sure what happened exactly?
Anyway I made following changes to my site in the past 2 months and maybe one of them worked (may be these will help you too):
1. Pushed more content above the fold.
2. Removed Keyword Rich Anchor Text from all INTERNAL Links: [webmasterworld.com
...] - Lots of TRUSTED sites are also suggesting this.
3. Removed 2 or 3 dofollow incoming links to articles which I dropped on a very popular forum. There was no intention of link building, the forum thread and my article were relevant. Still I removed the links considering them UNNATURAL.
4. NOINDEX but FOLLOW archives (categories etc.) in my WordPress blog.
5. Switched from Multi-page XML sitemap to single page XML sitemap.
If your site has also recovered, then do post what changes you made after 28 June 2014?
I hope this post helps someone :)