Installing curtain rods at the ceiling is a great way to add height to a space, but the drapes will cost a bit more because they will have to be longer. You might get a better picture quality if you installed a projection screen over one of the windows which could be raised out of the way when not in use.

There is so much you can do with the rug. You can go with a modern feel by bringing in metals, glass and creams with pops of orange or greens. You can go mid century modern by emphasizing the orange or even traditional with woods and beiges with hints of colors. If this was my starting point for a room that just needs to be cozy and comfortable, I would do a statement bed with darker wood. I would keep the curtains very light, and also the bedding. As there is creams in the carpet, I would steer clear of white, but use off white / beige for the bedding and curtains. Then I would use the orange and greens as accents in the room. Good luck and enjoy the process.

What a beautiful house, Shahbaaz! I live in a similar house - a 150-year-old colonial bungalow in Kumaon. You have already received lots of excellent advice from better-qualified people, so all I would say is, keep its age and heritage character the central theme. The white tiles do clash, I am afraid ... flooring with terracotta tiles would echo the roof and look lovely. The columns and the arches over the doors and windows are amazing. But I'd say, leave it all chuna-painted - there's a beauty and softness to it. Don't let the painters add too much neel (indigo) in the limewash -- in the hills where I live, they put far too much if I don't watch out and the result is a harsh white. Natural lime has a softer, creamy look.

You should ideally use multi utility furniture. A TV unit with in built or foldable dining table. Use big mirrors and light colors to give a spacious look. Because you have a big window ( in the living room) . That can be the accent wall with some dramatic curtains and a corner drop light. There is alot we can achieve in this space. This space seems to be quite exciting to design !