Inner China has the same challenge in the old parts of historic towns. The narrow streets you see without markings in India is what you find in old towns and historic inner parts of cities worldwide. Go to Kyoto Japan, or historic towns of Italy or France or Switzerland. Or Egypt, Morocco, Turkey, Thailand, Burma, and others. In the developing nations worldwide, you find the same narrow streets, same chaos above (hanging wires) and same chaos below (street confusion, and traffic mess).A country where the majority of people are pedestrians and yet, life is made so difficult for us. We can't walk in peace without having to dodge traffic. We can't cross roads in peace without avoiding being run over.
The govt needs to come out with minimum requirements for all roads and get builders to adhere to them. They should include footpaths with minimum width requirement, clear markings of lanes and ped crossings, a lane for hawkers to set up etc. It's one of the reasons why India looks so backward in comparison to other countries like China...
The problem is not modern builders, nor laws. The issue is people already live along these narrow streets, you cannot tear them down to build new pedestrian lanes, a lane for hawkers, a lane for this or that.
In old towns of Japan and Italy, they have converted streets into one way traffic (look for the blue arrow) or pedestrian only streets. This allows marking the edges of the narrow streets into pedestrian parts. I am linking Japanese situation because the population density, heritage and culture in Japan is as rich and somewhat similar as in India.
The challenge in India in many cases is land acquisition laws. Roads are already choked with traffic, there are more motorcycles and cycles and autorickshaws and cars and buses than the road capacity. If you take the same road and slice it into thinner lanes, where will the passengers in these buses, cycles, motorcycles, and the rest go? Everyone will break the rules because no one wants to wait 6 hours in a line every day to get home or to the hospital or the train station or wherever.
India also has the hyperactive, generally one-sided, biased media that alleges with sky-is-falling exploitation headlines that "no one wants to sell their land for better-designed infrastructures such as a road" type of propaganda or whichever political side is paying the journalist or the paper owner. You can pay the newspaper to publish an advertisement, or pay the newspaper to publish propaganda (also called sponsored news or sponsored article). They print photos of 15 paid demonstrators and politically active group, but never the photos of the street chaos that affects 150,000 people every day or illegal shops and demand action.
There is hope. Once major highways and metros come up because of the political party voted in to build the infrastructure, streamlining slowly but steadily follows. This is because people then have a choice to move away from dense old parts to new locations. Schools, universities, hospitals and such essential services move into better and more efficient locations. As the traffic load in inner old urban area reduces, rejuvenation and redesign typically starts.