Do you guys have any idea how much of Indian population is still living under poverty? Slumdog Millionaire depicted that part of India very realistically. Infact unlike many similar movies on the same subject this one did not exaggerate anything. I am actually amazed that a westerner was so accurately able to depict the slum life in India. Anyways, just so you know currently the number of people living in slums in India has more than doubled in the past two decades and now exceeds the entire population of Britain. Indian slum population doubles in two decades - Times Online

And its not like only the films which depict india in poor light do well in the west. The overseas collection of all the Karan Johar and yash raj films are a proof that people there actually love Bollywood masala flicks which have a larger then life appeal to them.