Indian cinema has not gone global overnight. Indian cinema has been inspired by Western Film Industry since its early days. The first feature film of India, "Raja Harishchandra", was made by Dadasaheb Phalke because he was moved watching the film "Life of Christ" at P.B.Mehta's American-Indian Cinema.
Raj Kapoor’s “Awara” sent the Soviet Union and other Communist bloc countries crazy in the 1950s. Mehboob’s “Aan” had a French release after its premiere in London. Satyajit Ray's "Pather Panchali" - a bengali film, won the Grand Prix at the Cannes festival in the year 1955. Year 1982 marked the historic "Gandhi" by Sir Richard Attenborough that swept away 8 Academy Awards including the award for Best Costume Design that went to Bhanu Athaiya who became the first Indian to win an Oscar. "Gandhi" was probably the first international co-production of India and UK. Satyaji Ray won an honorary Academy Award for Lifetime Achievement in the year 1992.
In recent days, after the mild success of “Lagaan” and “Bride and Prejudice”, we have seen the growth of interest for Indian cinema in the Western World. As Western audiences for Indian cinema grow, Western producers are funding maverick Indian filmmakers like Gurinder Chadha (Bride and Prejudice) and Mira Nair (Monsoon Wedding). Both Chadha and Nair are of Indian origin but do not live in India, and who made their names in Western independent films; they have now been funded to create films that "interpret" the Indian cinematic tradition for Westerners. A similar filmmaker is Deepa Mehta of Canada, whose films include the trilogy Fire, Earth and Water.
Indian cinema has also influenced the English and American musical; Baz Luhrmann's Moulin Rouge! (2001) incorporated a Bollywood-style dance sequence; The Guru and The 40-Year-Old Virgin featured Indian-style song-and-dance sequences; A. R. Rahman, who won two oscars for his legendary "Jai Ho" in the movie Slumdog Millionnaire in the year 2009, was recruited for Andrew Lloyd Webber's Bombay Dreams; and a musical version of Hum Aapke Hain Koun has played in London's West End.
The most recent act of globalization in this industry was when Shahrukh Khan’s “My Name Is Khan” was bought by Fox Star Entertainment for a whopping 1 Billion INR. This film debuted in Abu Dhabi, UAE on 10 February 2010. It released globally in theaters on 12 February 2010, and was also be screened as part of the 60th Berlin International Film Festival's Official Selection.
So, in my opinion, globalization has given the power to Indian Cinema to grow beyond boundaries and take Brand India to the global market. It is because of this, that today, there is a huge Indian diaspora in countries like the UK, Canada, the Middle East, South Africa which all represent a big market for Indian films.