By Monica Chadha BBC News, Mumbai

Lage Raho Munnabhai was a comic look on the failings of the system

Bollywood, the world's most prolific film industry, is raising a bullish toast to 2006.

After years of more misses than hits, the Mumbai -based industry has performed exceedingly well this year.

Among the hits of 2006 have been such movies as Rang De Basanti, a coming-of-age film which struck a chord despite a naive and violent climax; Lage Raho Munnabhai, a breezy comedy which resurrects the spirit of Mahatma Gandhi in fighting a sclerotic and corrupt system; and Krrish, an out-and out Indian superhero biopic.

'New experience'

Then there was the slick action-packed hit heist sequel tale, Dhoom 2 with its muscled and toned stars, and Fanaa on doomed love.

BLOCKBUSTERS Dhoom 2: Has earned over $14.5m on a budget of $5.6m Krrish: Has earned nearly $12m on a budget of $5.6m Lage Raho Munnabhai- Has earned $11.6m on a budget of $3.3m Fanaa- Has earned $10.5m on a budget of $4.5m Vivaah- Has earned $4.5m on a budget of $1.5mn Source: Film Information

The most heart-warming development was the success of low-budget movies like Khosla Ka Ghosla, an engrossing take on the shenanigans of unscrupulous realtors in urban India.

Film critic Indu Mirani feels that after years of confusion, film-makers have figured out what the audiences want today.

"They want a new experience. So whatever films they make, the directors are wanting to give the audiences something fresh," he says.

That is not easy for an industry which has spent decades regurgitating the same lost-and-found, song-and-dance stories or lifting from Hollywood.

Bollywood trade analyst Komal Nahta says the directors have finally realised the value for a good script.

"They realised that scripts are the backbone of good cinema," he says.

Dhoom 2 had action by muscled and toned stars

And filmmaker Rakesh Roshan, who made Krrish, said the cineplex explosion in urban India had made "educated people" return to the theatres.

Bollywood insiders echo Roshan's sentiments and say the cineplex has altered Indian film-going habits and Bollywood economics.

Earlier, single screen theatres would require at least 800 to 1000 people for a show to be a commercially successful and help the movie to break even.

At a typical five-screen cineplex, in contrast, each theatre needs only about 200 people to make it a full house.

Cineplex ticket prices are usually three times more than the single-screen cinema tickets, but audiences still prefer them for their comforts and good projection and sound.

The result is that Bollywood is laughing all the way to the bank.

Diaspora fortunes

Adding to their fortunes is the Bollywood-crazy diaspora market, especially in the UK and North America, where films have been faring well in the past few years.

There have been films which have flopped resoundingly at home only to be lapped up by diaspora audiences.

Take for example, Kabhi Alvida Na Kehna, a creaky infidelity tale starring top stars, that sank after an impressive opening at the cinemas in India, but went on to mop up massive earnings overseas.

It is simple economics, experts say. A Bollywood movie ticket in UK, they say, typically sells at �10, or 800 Indian rupees. That is the price of four tickets for one overseas.

Khosla Ka Ghosla looked at the gullible middle-class Indian

Also, Bollywood has discovered that moolah can be finally made in franchising their films through video games, clothing lines, music ring tones, and mobile movie clips.

"Bollywood music and clips brings us a big chunk of revenue from our non-voice services," says Harish Gandhi of Airtel, one of India's biggest mobile telephone companies.

All this is emboldening directors to take some risks and make different movies.

"Films made on reasonable budgets and original scripts are working because producers are willing to take risks," says Indu Mirani.