<human>:  Why is the Indian film industry, also known as bollywood, called bollywood?
<bot>: The term bollywood is a portmanteau of Bombay and Hollywood. It is used to describe the Indian film industry, which is the largest film industry in the world. Bollywood is famous for its lavish musicals and melodramatic films. Bollywood movies are often shot on a grand scale, and are often filmed in exotic locations.