Well, actually... many many Bollywood movies feature white people. As dancers. It's a trend right now: a lot of the backup dancers in big Bollywood dance numbers are white women/Western dancers. It's pretty odd to watch!

Bollywood has it's own set of issues--India has a VERY diverse population, in terms of South Asian ethnic groups (not to mention South Asia=4 countries, not just India), religion and languages spoken (they have over 1,500!), but Bollywood represents a VERY small fraction of the population, and specifically has deep class issues (typically Bollywood actors, producers, writers, choreographers and directors are comprised of a small subset of very wealthy people, and it's an inclusive community that is hard to break into--Bollywood has many family dynasties). Bollywood is also the primary and dominant film industry in India, but it's not the only one. There are smaller but present industries producing films in Telugu and Punjabi (as well as other regional languages, but those two come to mind for me. Sometimes Bollywood will actually remake a breakout Telugu or Punjabi film in Hindi). Sorry for info-dumping, but: NUANCE! There's nuance and complexity, soooo not a good Devil's Advocate example?

As an Indian, I can say that this is correct.