The corruption found in India is nearly at all levels. It's particularly bad on the local levels. There needs to be a robust effort to root out bribing and severely punish anybody who takes bribe money for merely doing the municipal job. As another poster said, other countries have cleaned up, so can India.
There are several ways that this can happen. One of them is mass ideological change which can be brought about by change in government or a massive disaster such as war. Both of these things bring about with them changes in policy which would possibly be counterproductive to those who take part in corruption. Transparency is what is necessary to weed out corruption, but the only way that will happen is if the public decides not to put up with it anymore.
I don't see why not. Access to the internet has improved the ability of people to organize against powerful entities like corporations and governments, and India has a lot more access to the internet than ever before. This change may give the people the edge they need to fight corruption.
For years India has been corrupt and it doesn't seem like it's going to change anytime soon. Unfortunately, many of the citizens seem perfectly happy with this system and have just accepted it as part of their every day life. India will stay corrupt until both the citizens and leaders are on board with change.