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Indian nationalism has remained, for long, an important subtext to Bollywood cinema. However, whether Bollywood cinematic output could be considered as Indian national cinema has encouraged very divisive academic discourses. When Bollywood received the status of an Industry in 1998 in keeping with the promise made in the BJP 1998 electoral manifesto (Bharatiya Janata Party, 2016, p. 232–233), it appeared that the benefits of Economic Liberalisation could finally be enjoyed by the Bombay film establishment. By focusing on Mani Ratnam’s Dil Se  …  (1998) and Kunal Kohli’s ‘Fanaa’ (2006) this paper shall explore in detail how the nascent neoliberalism affected the discourse of Indian nationalism on the Bollywood screen through binary formation, and Othering of minorities; and how such strategies were incorporated within Hindutva style of communal identity formation in the wake of the political discourses engendered by the 2001 Parliament Attack. [ABSTRACT FROM AUTHOR]