What a difficult situation you’re in. While I am unfamiliar with the cultural norms of arranged marriages in India, I do know that it’s painful to have a man you love choose to marry someone else. If I’m understanding your question correctly, you’re wondering if you should marry your “good friend” with the hope that romantic feelings develop, or if you should go ahead with the arranged marriage with to a man who doesn’t treat you well. A man who treats you poorly during courtship is likely to continue to mistreat you after marriage. If your parents agreed to “drop” the arranged marriage after you shared your concerns with them, then I suggest you let go of that relationship for good and seek out other options for marriage.
There is a third option I’d like to suggest and that is to not move forward with either option. Please take some time and figure out what you value most in your life and what you want in your relationships. The decision to marry is one of the biggest and far-reaching decisions you’ll ever make. You may want to consider continuing to date your “very good friend” nonexclusively and see if any deeper feelings develop, while you continue to meet other people. While romantic feelings can develop over time, there’s no guarantee that they will. Since it seems that your parents responded to your concerns before, I encourage you to consult them again and ask for their help in finding other men to court.
Take good care of yourself!