My first question for you is do they have Ikea in India? They have the market cornered when it comes to smart and unique ways to furnish small spaces - and as far as I'm concerned, their specialty is clutter control! It would be helpful if you could post pictures so that we can understand your space a little better. I will say that, as far as paint color goes, the first color that comes to mind is white. It makes any space feel fresh and clean and spacious, and will make the smallest picture or cushion just that much more noticeable. In a small space this is good since you won't have room for a lot of these items!

So you're running two threads on this space? I think you'll be happier with the responses if you stick to one thread for the entire makeover, as it is all inter-dependent - foyer - living - dining. Now that I know that the living dining are together I'd suggest you use measurements from the blocked space above the windows to determine stripe width in the dining space if you go with the wide horizontal stripes I suggested. The pattern is already set for you if you take the measurements. You could also make the stripes the width of your lower window section, or half of it, but use the horizontal lines already in your space to determine the other stripes you may add.

If I understand the seasons in India correctly, you have already been through the rainy season. Don't wait until the next rainy season to get the problem with your drainage fixed. Now will probably be the ideal time to get it fixed. Please get someone who will tell you what to do and then have the work done. The paint on that wall in your beautiful home will keep coming off!

Thank u all so much, though I must clear the confusion on the pic I posted... The actual space as of now has -'no cladding or wood planks' what so ever, it does have the same rectangular shape, the same ceiling pop, with the same electrical points for TV, and a balocny at the opposite end. Which is why, I was seeking your feedbacks. :)