i do not know enough to talk about solution, can only talk about info that i have picked up when i was looking into this. if this issue is troubling you so much, my advice would be to deep dive into annual reports of local bodies, spend some time figuring out PWD works tender costing for each public utility and trends.
generally i would suggest, it would be unwise to extrapolate on topics which are high denominator by nature, like potholes etc.
on a lighter note...
let's say there are 6,617,100 lakh km of roads in this country, do the multiplication factor for potholes or cracks etc. how many potholes can one get angry about, considering there are only 365 days in a year. even if you get upset about one pothole or a road crack per km per day, there are still 6,616,735 out there which comes to a probability of 0.000000151142595

. that's how miniscule it is.
worry about the city you currently live in, and the city you want to live in, rest is all noise. in my view it is stupid to worry about potholes and roads nation wide.
if we ignore the noise, the trend is in the right direction. it is a fact that as economic activity of the country grew, we are seeing that quality of service is also improving along with it.at India scale these are large time frame topics that should be viewed decade by decade.