Is a tv being place in the room? If not, try creating a seating and conversation area floating in the center of the room....maybe with two small sofas facing each other and a coffee table or ottoman in the center. Or two chairs and a sofa, the two chairs are more versatile for layout options. Good luck!

I would suggest using a blackout and thermally insulating roller blind, and sheer drapes inside that. You would be able to use the sheer drapes most of the time, and the blinds for hot sunny weather or TV when the sun is in the wrong place.

I may be wrong, but I think this was intended to be a living room and dining room. So I would move the whole seating area down to where the rug is in front of TV and get a table and chairs.

I Would Say you have a nice airy, ventilated and well lighted room.. Absolutely why natural light to severe needed for any home. Aahan what you are thinking is absolutely right that having a modern couch can make this room look completely different. also try changing the room colour make it light which will give you the much needed change... fresh... and elegant look....use white or ivory. Something like the photo shown below.. or also refer to our work which we have put up on houzzz...