India has the biggest film industry in the world producing around 1000 films a year. Most of these films are produced in Mumbai (formerly known as Bollywood)
Bombay is actually the old name of Mumbai city, which is where the most of the Hindi film industry is based. Just like the US film industry is mostly based in and around Hollywood. The origin of the term Bollywood is rather vague. It evolved sometime in the mid 1970s. The origin of the term is believed to be from the features in the popular film publications of that time. The term has acquired huge currency in the popular lexicon, and most refer to it to mean the Hindi Film Industry. To be fair, many powerful voices in the industry actually resent this term, and consider ot to be a pejorative. In their opinion, the term Bollywood reflects poorly on the industry, and depicts it as the poor cousin of the Hollywood.
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