Let me give you my thoughts.
Having recently picked up my first speakers (floorstanders) 3 months back and having seen first hand whats on offer in Mumbai for what prices, I think these are your options
Get a 3k DVD player from Philips/Samsung/LG. They come with USB drives and will play all kinds of video content.
(The higher models have optical audio out, which means you can let your AVR (superior) DAC do the digital to analog conversion rather than the dvd player DAC)
Once you have the USB problem sorted, here is the real options
1. AVR/Stereo amplifier
The Denon X500/Yamaha 375/Pioneer 323 are all entry level AVRs and they will let you upgrade to 5.1 later from your 2.0 currently. Plus they can handle multiple video inputs (HDMI). However, because they are a little down on power, they wont drive the higher power (usually high end) speakers well
Instead, you can check a entry level stereo amp like Marantz PM5004 or the NAD 316BEE. Stereo amps will drive speakers much better than AVRs
It means you wont be able to upgrade to 5.1 soon, but if you go for stereo + floorstanders, a good pair of floorstanders create such a wall of sound that you dont feel the need of 5.1 system (I am VERY happy with my Dali Zensor 7s and so is FM @karhick-raja)
Most people do not have multiple video sources, and even if you have, most flatscreen TVs have multiple inputs
2. Bookshelves/Floorstanders
Among the bookshelves, I can speak about the Dali Zensor 3s because I have the Zensor 7s and I have listened to the Zensor 5s. The sound will be very musical, and with the 6.5" driver there will be very decent bass.
Somewhat better will be the PSB Image B6, which provide even bigger sound, but at a higher costk
(There are lot of other very highly rated bookshelves like Wharfedale 10.2, Q Acoustics 2020 etc)
The only question is whether it can fill your somewhat large room
In floorstanders, apart from the Monitor Audio MR4 mentioned by Homi sir, I strongly recommend the Boston Acoustics A360. These large sized floorstanders are just under 40 and provide big sound. There is the smaller A250 model too, but I think the A360 is worth it.
Listen to both if you can
There is the out of the box option of the Pioneer SP-FS52 for about 29k. Some forum members have doubted whether they are as good as they are hyped to be, but they have been rated highly by some AV magazines. Finding them in any store is another challenge though
