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The term "Bollywood" is often used by non-Indians to refer to the whole of Indian cinema; however, Bollywood proper is only a part of the larger Indian film industry, which includes other production centres producing films in many other Indian languages.

By revenue, Bollywood is the largest film producer in India, representing 43% of the net box office, while Tamil and Telugu cinema represent 36%, and the rest of the regional cinema constitutes 21% as of 2014.

The naming scheme for "Bollywood" was inspired by "Tollywood", the name that was used to refer to the cinema of West Bengal.

Dating back to 1932, "Tollywood" was the earliest Hollywood-inspired name, referring to the Bengali film industry based in Tollygunge (in Calcutta, West Bengal), whose name is reminiscent of "Hollywood" and was the centre of the cinema of India at the time.

Credit for the term has been claimed by several different people, including the lyricist, filmmaker and scholar Amit Khanna, There was clearly a huge market for talkies and musicals; Bollywood and all the regional film industries quickly switched to sound filming.

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