Not much to go on. A drawing/floor plan to show where windows, doors, and such are in the space... and what connects to this space? You say first floor, so where are the stairs? Two rooms... what are each of the rooms to be used for? (Kitchen, living room, dining room, a bedroom, an office.... what?)

I would go online and check out IKEA furniture/ living rooms for inspiration, even if there is not one close to you. Then with road trip it to IKEA or use their LR designs for inspiration. Affordable wall art, rugs, drapes/ blinds and furniture can turn this into a great spot. Right now it looks like odds and ends you have gathered about you.

Hi! I'm so glad I came across your floor plan, got pretty excited and ideas started flooding. Firstly, I'm uploading a draft of a floor plan I made as a rough copy (with a pencil and a paper), so kindly excuse the imperfections. (please refer to the picture I've posted along with this.) Secondly, as you mentioned, you would want to include the balcony in your seating area, I recommend you to break the wall and instead use French windows to allow the light within and it'll also feel very open. Then, about the kitchen, as you said you wouldn't want a large dining area, you could take that space for an open kitchen, where the counter also serves as the dining space from the outside. And since, the kitchen would be made towards the direction of the arrow pointed (refer to the pic) we get ample space to make a Pooja room. And to give an enclosed feel to the living room I chose and L shaped couch for it. I would suggest you to go for a mounted TV on a rotatable stand on the wall so that its accessible from anywhere across the room. Having done that, we are still left with some space (marked with a circle in the pic ) which could be used to put some more seats for the living room OR... (THIS IS MY FAV PART IN A HOUSE!) you could also use that space to mount a swing from the top. There were few more probabilities to do this house, but I genuinely found this one to be the best, coz I'm a huge fan of open spaces, and it's a good layout a lot of things could be done with it. All the best.

Mr. Purshottam ji, This is Ar. Rukmini. We can get in touch to discuss about your requirements. Regards