Chevrolet Optra Royale 1.6 VGIS. I think it fits your bill best. Costs little less than 10 lakhs on the road, but you can push for big discounts from GM. Alternatively the base version (Optra Elite) costs little less than 8.
Big, comfortable and good looking. Brilliant interiors. Loads of goodies to keep the wife and kids happy (sunroof, double din MP3 player, climate control etc). Good engine, enough to keep you happy if you prefer cruising to boyracing. The car is stable and solid at high speeds, and is great for highway driving.
If you like SUVs, then you will be very tempted by the Duster! If you drive on bad roads or like having a taller vehicle in traffic, then the Duster is an easy choice. However, if you look at value for money, then the Sunny and Scala score higher. Huge space inside, good fuel economy, same engine as the Duster... if your driving is mostly in the city and on highways, then Sunny or Scala will do. But if you go to the hills or mountains once in a while, then you should think about the Duster!