The Maruti Suzuki Celerio is a good option to consider. It is spacious, comfortable, and easy to drive. The 1.0-litre petrol engine is peppy and efficient, and the car is also available with a CNG option.
The other option is the Maruti Suzuki Wagon R with the 1.2-litre petrol engine. It is good on space, comfortable for the city, and highly efficient too. The ZXi variant will fit in your Rs 7 lakh budget.