Zaki I thought we were only talking about BOLLYWOOD (Hindi Film Industry) and not about regional Cinemas of India?
I am quoting this from the Book -
Bollywood - a guidebook to popular Hindi Cinema (page 2- 3) :-
"Bollywood" - a tongue-in-cheek term created by the English language press in India in the late 1970s - has now become the dominant global term to refer to the prolific and box-office oriented Hindi language film industry located in Bombay (renamed Mumbai in 1995).
The most frequent factual error perpetuated by the international and Indian press is that the Bombay film industry produces 800-1200 films a year. The Bombay industry (Bollywood or Hindi Film Industry) actually produces about 150-200 films a year
and I was not talking about the total output of INDIAN film Industry, but I was only concerned with Bollywood (Hindi Film Industry)...
If still in doubt check Encyclopedia of Indian Cinema and see the output of various regional Cinema across India..