Hi i own a 2001 Palio 1.2 EL with approximately 64,000 Kms on the Odo. Lately whenever i get my car on rough roads/ potholes there is a sound from the front right side I guess its from the lower arm. I remember changing it a couple of years back. Is there any way to fix that lower arm or it needs to be replaced. Also the steering is pretty tight, manual one, can anything can be done to make it soft.

Jack the car up at the front, and shake the wheel, feel for any play, and you'll know what to do!
Suspension parts are inexpensive on Ebay.
About the steering, no powersteering?
Anyway, check the tire pressure first, maybe raise it a bit, and see what happens.