Bollywood
(BAW.lee.wood) n. The films or film industry of India. —adj. Relating to India's films or film industry.

Example Citation:
A three-hour Bollywood potboiler averages a half-dozen songs. There is no current Hollywood equivalent, even though Baz Luhrmann's latest venture, Moulin Rouge, borrowed heavily from this genre.
—Aparita Bhandari, "Bollywood dreams," Toronto Star, November 1, 2001

Earliest Citation:
Soon after she had given up the role of Rani Maqbet..she left Ravi Kumar to go to Dhartiraj. My revelation she had done that was the greatest sensation ever to come out of Bollywood.
—H. R. F. Keating, "Filmi, Filmi, Inspector Ghote," Crime Club, 1976

Notes:
This word is a cinematic blend of two places: Bombay and Hollywood. Bombay (now known as Mumbai) is the center of the Indian film industry which, according to one report, produces over 800 films a year. And, no, I'm not sure if a giant "BOLLYWOOD" sign exists.

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