Bollywood has some amazing movies if you know where to look. Especially at the Indy level.
If you just look at the highest grossing/best selling films, they are all designed to sell to the lowest common denominator. So lots of useless songs and dance sequences, simple storylines, cheesy dialogue, famous actors, climax where everything seems doom and gloom with a sunny, happy, Disney approved ending. They are big and over-the-top and stretch your suspension of disbelief. Even the movies with good substance in them are usually given the Bollywood treatment, so you get used to looking past that.
Mangal Pandey and Rang de Basanti are 2 movies that come to mind that buck this trend. Peepli Live too, but that wasn't a huge box office hit.
Kahani was a really good movie.
The Indy films are where it gets really good.