Perhaps a large round table might mean a rug is not at all necessary. It could be a metal tray table, or carved wood like Rebecca Mitchell Interiors illustrates. Ideas also to consider, using multiple tables can be found at http://www.houzz.com/multiple-coffee-tables. I also agree with comments above that some color is needed on the walls. You could then hang round mirrors, or an unusual curved shape like RMI shows above.

16' long is a lot of room. Can you post a pic of the rest of the room? Remove every door you can. Every doorway does not need one and doing this one simple thing will remove a ton of bulk and make your space feel more open - no need to remove the hardware if you think you might want the doors back sometime in the future. Are you up for painting the walls and possibly the trim? Is this a sectional? If so, you might have to split it in order to get it to fit. The curtain into the bedroom is a good thing. I have used that idea, I love it, and I am not from India! Change them out for a lighter color and add panels to the ones you have - make them at least 3x fuller than the doorway. Pull them all over to the hinge side of the frame after the door has been removed. Your pictures need to be rehung and you can address that once you have found a furniture arrangement that works.

I have some suggestions if you are thinking budget friendly changes. Make a photo gallery with different size frames and arrange them parallel to the stairs, so you can enjoy each photo as you climb up. And for the area that will be on a level with your upper floor, try some pretty decal that will connect the photo gallery to upper level. And last, if you have budget add some beautiful hanging lights in the stairwell. Also think about repositioning your refrigerator.

Hi Option 1 As suggested by Cornerstone above. This way the TV will be visible from dining too Option 2 Move TV to the corner of the entrance wall, next to the window, placed at 45 degree angle. The L shaped sofa can then go to the diagonally opposite corner. The wall can be a see through book shelf/crockery shelf. This is better as the visitors have some inviting empty space as soon as they walk in instead of a sofa. Option 3 TV in current position, but instead of the TV being mounted on wall, perhaps have an open shelf (like below)