by 
raylrodr
ANSWERS: 3
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It's basically the Indian version of Hollywood. The Indian film industry is referred to as Bollywood, just as the American one is referred to as Hollywood, regardless of where the movies were actually filmed.
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Bollywood is the Indian equivalent to the US's Hollywood. As far as I know, the prefix "bolly" as used doesn't have any particular significance in India.
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Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the Indian film industry. Bollywood is the largest film producer in India and one of the largest centers of film production in the world. Bollywood is more properly referred to as Hindi cinema. The name is a portmanteau of Bombay (the former name for Mumbai) and Hollywood. The term "Bollywood" has origins in the 1970s, when India overtook America as the world's largest film producer. While not an actual place, it does have a definition in the OED.
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