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Art cinema In addition to commercial cinema, there is also Indian cinema that aspires to seriousness or art. This is known to film critics as "New Indian Cinema" or sometimes "the Indian New Wave" (see the Encyclopedia of Indian Cinema), but most people in India simply call such films "art films".

From the 1960s through the 1980s, the art film was usually government-subsidised: aspiring directors could get federal or state government grants to produce non-commercial films on Indian themes. Many of these directors were graduates of the government-supported Film and Television Institute of India. Their films were showcased at government film festivals and on the government-run TV station, Doordarshan. These films also had limited runs in art house theatres in India and overseas. Since the 1980s, Indian art cinema has to a great extent lost its government patronage. Today, it must be made as independent films on a shoestring budget by aspiring auteurs, much as in today's Western film industry.

The art directors of this period owed more to foreign influences, such as Italian Neo-Realism or the French New Wave, than they did to the genre conventions of commercial Indian cinema. The best known New Cinema directors were Bengali: Satyajit Ray, Ritwik Ghatak, and Bimal Roy. Some well-known films of this movement include the Apu Trilogy by Ray (Bengali), Meghe Dhaka Tara by Ghatak (Bengali) and Do Bigha Zameen by Roy (Hindi).

Art cinema was also well-supported in the state of Kerala. Malayalam movie makers like Adoor Gopalakrishnan, G. Aravindan, T. V. Chandran, Shaji N Karun, and M. T. Vasudevan Nair were fairly successful. Starting the 1970s, Kannada film-makers from Karnataka state produced a string of serious, low-budget films. Girish Kasaravalli is one of the few directors from that period who continues to make non-commercial films.

In the film markets of South India, particularly the Tamil film and Telugu film industries, directors such as K. Balachander, Bharathiraja, Balu Mahendra, Bapu and Ramana, Puttanna, Siddalingaiah, Dr.K.Vishwanath, and Mani Ratnam have achieved box-office hits whilst balancing elements of art and popular cinema. Such films include Nayagan and Kannathil Muthamittal.

Satyajit Ray was the most successful of the "art" directors. Many Indians knew his name and took pride in his numerous foreign awards. Prestige, however, did not translate to large-scale commercial success. His films played primarily to art-house audiences (students and intelligentsia) in the larger Indian cities, or to film buffs on the international art-house circuit.

From the 1970s onwards Hindi cinema produced a wave of 'art films'. The foremost among the directors who produced such films is Shyam Benegal. Others in this genre include Govind Nihalani, Mani Kaul, Kumar Shahani, M.S. Sathyu.

Many cinematographers, technicians and actors began in art cinema and moved to commercial cinema. The actor Naseeruddin Shah is one notable example; he has never achieved matinee idol status, but has turned out a solid body of work as a supporting actor and a star in independent films such as Mira Nair's Monsoon Wedding.