The name "Bollywood" is a
portmanteau derived from Bombay, India, (the former name for Mumbai) and Hollywood, California, the center of the
American film industry.
 Bollywood does not exist as a physical place. Some deplore the name, arguing that it makes the industry look like a poor cousin to Hollywood.
The naming scheme for "Bollywood" was inspired by "Tollywood", the name that was used to refer to the
cinema of West Bengal. Dating back to 1932, "Tollywood" was the earliest
Hollywood-inspired name, referring to the
Bengali film industry based in
Calcutta, whose name is reminiscent of "Hollywood" and was the centre of the
cinema of India at the time.
 It was this "chance juxtaposition of two pairs of rhyming syllables," Holly and Tolly, that led to the portmanteau name "Tollywood" being coined. The name "Tollywood" went on to be used as a nickname for the Bengali film industry by the popular
Junior Statesman youth magazine, establishing a precedent for other film industries to use similar-sounding names, eventually leading to the coining of "Bollywood".
 However, Tollywood is now used popularly to refer to the
Telugu Film Industry in
Andhra Pradesh. The term "Bollywood" itself has origins in the 1970s, when
India overtook America as the world's largest film producer. Credit for the term has been claimed by several different people, including the lyricist, filmmaker and scholar Amit Khanna,
 and the journalist Bevinda Collaco.