Since the movie studios only release slightly older movies (3 months or so after release), the piracy market has changed so that only the latest movies are pirated and are normally of low quality. Also, a lot of the pirated movie DVDs are compilations, stuff like 3 movies-in-one or multiple movies of an actor.
This is valid mostly for regional movies. Legit English DVDs of popular movies from western studios are sold for around 600-700 rupees (around 15 dollars), so the market for pirated copies of such movies is pretty large.