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Bollywood's economic workings are more mysterious. It still exists in what was known as the informal and high-risk sector of the Indian economy. Banks rarely invest in Bollywood, where moneylenders are rampant, demanding up to 35 percent interest. The big corporate houses seem no less keen to stay away from filmmaking. A senior executive with the Tatas, one of India's prominent business families, told me, "We went into Bollywood, made one film, lost a lot of money, and got out of it fast," adding that "the place works in ways we couldn't begin to explain to our shareholders."
Since only six or seven of the two hundred films made each year earn a profit, the industry has generated little capital of its own. The great studios of the early years of the industry are now defunct. It is outsiders- regular moneylenders, small and big businessmen, real estate people, and, sometimes, mafia dons- who continue to finance new films, and their turnover, given the losses, is rapid. Their motives are mixed: sex, glamour, money laundering, and, more optimistically, profit. They rarely have much to do with the desire to make original, or even competent, films.
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Pankaj Mishra (Temptations of the West: How to Be Modern in India, Pakistan, Tibet, and Beyond)