Hollywood is not that far behind as well. Where once we had the Godfather, Taxi Driver and 2001: A Space Odyssey has now degraded into Infinity Wars, Solo and Jurassic World. The quality of movies have been steadily declining since the late 1970's thanks to big studios and corporations who have taken the creativity out of the hands of artists and given it to committees and their marketing dept.
Bollywood at least never imagined or conceived itself as the center for high art and its aim has always been to entertain the masses and make money. In that regard, Bollywood is doing exactly what it was supposed to. However, some people including me have always expected more from it just because of its share size and resources. Still, its not an exaggeration to say that compared to other foreign cinema, Bollywood has surprisingly stayed quite bland and unimaginative.
So to me the main question should be why is Bollywood so bad and what has lead to the decline of Hollywood over the decades.
Simply put, its the persistence existence of dumbness and unsophistication of people in the case of the former and the dumbing down phenomenon in the case of the latter.
India has come a long way but the banya mentality is yet to progress. The embrace of unabashed capitalism does not automatically translate into a society which is progressive and mature. A lot needs to happen before we can even dream of any type of progress.
In case of America, people were much more literate, well read and sophisticated back in the sixties and seventies. The emergence of the corporate influenced consumer friendly culture that started with the boom boom eighties has morphed into a disinterested, impulsive and detached society in current times.
Good art always come when people ask for it. When the audience stopped looking to movies for philosophical and social answers, when they got more interested in mindless entertainment and at best nerdy obsessed fan-boy culture with the success of Star Wars, it was only natural that all we have now is two categories of movies. One made for kids and the others made for man-childs.
Be as it may, thankfully we still have the cinema of South Korea, Iran and majority of Europe to look forward to.