Film director Shyam Benegal, who moderated a session on the Indian entertainment industry as part of the Pravasi Bharati Divas here, said the Indian diaspora had become a significant market in the past decade.
Filmmaker Yash Chopra said that films with Indian culture as their theme found great success abroad, such as his latest production "Veer-Zaara".
"For us as filmmakers it becomes our duty to note the strong influence that each film can have on our audiences, in particular on those settled away from India."
But actor and social activist Rahul Bose challenged this.
"I think we as Indian filmmakers have almost never respected those in the diaspora as having varied tastes. I think this is an insult (to them). I think they deserve to have a choice," he said.
"A film, if it has appeal, will be viewed by anyone. We should be giving you stuff that you want to see, not just stuff with the right ideal (as seen by Indian filmmakers)."
Bose also hit out at non-resident Indian financiers of some Bollywood films.
"I suspect that most of that money has been coming in so that someone can shake Aishwarya Rai's hand," Bose said.
"I look forward to the day when someone in the diaspora chooses to invest in a movie because they believe in both the movie and that it will contribute to the pantheon of world cinema."
Nasreen Munni Kabir of Channel 4 in Britain agreed with Bose.
Kabir said the audience for Bollywood films had become "whiter", not "wider", referring to the growing interest among western audiences.
While the length of Indian films and subtitles remained a problem to outside audiences, cutting out songs would not be beneficial, as they were becoming the elements most appreciated by audiences, Kabir added.
Participants' views varied greatly, from attacks on the technical quality of Bollywood films to their higher visibility in the international market.
A change in Indian filmmakers' attitude may meet the huge diversity of tastes and interests among outside audiences, some delegates said.
A heated debate followed Film and Television Producers Guild of India president Amit Khanna's outburst against participants airing complaints about Bollywood films not matching Hollywood standards.
Khanna said the diaspora factor had a dual positive impact, serving both as a cultural link to India and as a major revenue earner.
But he lamented that while 3.8 billion people watched Bollywood films (0.6 billion more than Hollywood films), Bollywood only earned 0.2 per cent of the revenue as ticket prices were lower here.
He asked the delegates from more than 60 countries attending the conference to assist in the battle against piracy.
"You need to become the ambassadors and protectors of our intellectual property," he said.