Companies and Industries often don't compete with other ones when there's a significant enough barrier to do so (or not to do so). There's a huge and rapidly growing market in India, why would Bollywood look elsewhere without increasing it's take of it's own market?
I posit that Hollywood better look to Bollywood for it's growth potential - the middle-class in India is growing, while the US middle class is in decline.
Anyway, if Bollywood doesn't want to think global, I'm ok with that. Someone else will seize the opportunity.
http://online.wsj.com/news/articles/SB1000142405270230421390...
Btw, in other threads people are debating whether it's a good idea to spend money on space research, and here we are telling them to spend money in movies instead? What gives?
Animation is probably the logical place. It's not the quantity of films, but the quality.
Bollywood does makes some great movies, of course: http://en.wikipedia.org/wiki/3_Idiots
Here's what Hollywood makes:
http://www.informationisbeautiful.net/2012/how-much-does-hol...
It looks like they get around $10 billion US and $25-$30 billion internationally.
So, in the big scheme of things, a billion dollars is less than the Avengers made at the box office.