Thank you roj leather and Simon for your recommendations. I like the hanging chair and the almanda creeper on the wall. This will certainly liven up the patio.

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!

I'd go for make it white; then right there, flop one nice little white overstuffed loveseat or something that fit, or one big whopping chair, and fit in a tiny table and light; treat that corner as it's very own micro-retreat, and the seating is to not face out into the room. Like little lounge spots put under stairs, make this one dedicated to the view; and make it minimal. Decorate the rest of the room as if the column and retreat bit isn't there.

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.