One possibility would be to swap the living room and the dining room. Since the current living room is larger than the current dining room you could still keep some comfortable seating (couch and upholstered chairs?) against the front wall for a keeping room/dining concept. Then your new dining areas (kitchen and dining room) and living areas (living and drawing room) would have good flow between them, which would work well both for family and entertaining. You could also add some builtin bookshelves in the drawing room or new living room to create a library area to add another fun element to the living areas. These bookshelves could be against the long walls in the drawing room, around the window with a window seat in the living room (former dining room), or built to create some separation in the open area between the drawing room and living room/stair area. Your plan seems to show some sort of builtin there, but I'm not sure what it is.

i agree with lighting trends on the peach ,here are a couple of palettes to choose from note your lighting will accentuate the mood and can give the hue you want , but definitely go for a neutral , the colours are from sherwin williams, benjamin moore , behr , and kelly moore

Keya, glad you decided to take the one reader's idea about moving the armoires in front of windows that you don't need and giving the bed a wall of its own! And, yes, you can have Roman shades on one wall and layered drapes on the other. When I had drapes made for my tall sitting room windows/doors, I had them use the same fabric for the Roman shades for the smaller windows on the other wall. For me personally, in these older Indian homes with all the odd nooks and niches in the walls, perhaps it would be more soothing to have a light/med tone paint on the walls that blends with the drapes/blinds for an 'uninterrupted' look, and I would use the same color on ceiling and beams. (but that is just my thought) I would start the process with a large carpet with your favorite colors, then choose your Bedcover & cushions, then your wall paint and fabric for drapes/blinds ..Not certain what style you like, but if you really like a particular Ethnic bedcover fabric, you can always have them stitched into curtains or Roman shades too. Can't wait to see the "After" pics!

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.