Bollywood is the term for Hindi movies produced in Mumbai, India. It’s a mix of Bombay, which is how Mumbai used to be called, and Hollywood. For years, Bollywood cinema was largely ignored by the rest of the world outside of India and neighboring countries, but that is no longer the case. The influence of Bollywood in Hollywood and other film-producing countries is now so strong that it can no longer be denied or ignored.

For years, the Indian government prohibited banks and other large investors from investing money in filmmaking, claiming that it was not a real industry. Some aspiring directors who were lucky enough to have some money would fund their own efforts, but that was not an option for most. Instead, they looked to smaller investors, which in some cases meant using money from the underground crime syndicate. The use of mob money to finance movies gave Bollywood a bad name, which is why so many in the Western world rejected the industry outright for so many years.

In 2000, the Indian government finally lifted the ban on banks lending money for movies and recognized movie making as a viable industry. It didn’t happen overnight, but after several months some of the biggest banks started investing in the industry, allowing Bollywood to distance itself from illegal money. When this happened, more movies began to be produced and ticket sales and revenue skyrocketed into billions of dollars every year. Hollywood began to take notice, as some very influential filmmakers began to tell how Bollywood movies of the past influenced their mainstream movies.

One of the most famous directors to claim a Bollywood influence is Australian filmmaker Baz Luhrmann, who won accolades for “Moulin Rouge” in 2001. The musical was a huge success and was influenced by the songs and dance numbers that permeate the songs. Bollywood movies. “Moulin Rouge” was such a hit that it spurred something of a Hollywood renaissance for musicals. In the following years, musicals such as the Oscar-winning adaptation of “Chicago,” “The Phantom of the Opera,” “Rent,” and “The Producers” became mainstream films that garnered huge box office revenues. “Moulin Rouge” was widely recognized for driving this musical renaissance, with Bollywood being the inspiration to bring musicals back to western cinemas. This is possibly the biggest contribution Bollywood has made to the film industry.

Bollywood also has a great influence on the financial aspect of the film industry. Once the Indian government allowed banks to finance movies, bank executives saw how profitable movies could be. With low production costs and high ticket sales, the profit margin was through the roof on many movies, and bankers recognized the industry’s potential. Soon, they began to invest not only in Bollywood, but also in Hollywood. Director M. Night Shyamalan, a Native Indian who grew up in the United States, obtained about half of the financing for “The Happening” from Indian banks. This type of deal could easily be made with other directors who are willing to take an unconventional route to finance their films. This kind of arrangement would never have happened unless Indian bankers saw the potential of cinema through Bollywood.

Since money is the bottom line for many Hollywood executives, they have paid close attention over the years to the disparity between ticket sales for Bollywood and Hollywood movies. In an average year, Bollywood movies sell around 3.6 billion tickets, while Hollywood sells only 2.6 billion. Of course, the price of Hollywood tickets is higher, so the income is also much higher. The average cost of a film produced in the United States is around 50 million dollars, while the average Indian film costs only 1.5 million dollars. With such a high profit margin, film executives in other countries clamor to see how they can cut the costs of their films and sell a billion more tickets each year as Bollywood does.

Between music productions, changes in funding, and large audiences, Bollywood’s influence over the rest of the world of film production, especially Hollywood, continues to grow. It remains to be seen if more filmmakers will do what Shyamalan did and co-finance future film projects with money from Indian investors. Movies like “Iron Man 3” are already getting half their funding from China, so it might only be a matter of time before India is in the mix more often. If that happens, then Bollywood’s influence on the film industry may be complete.