There is just a single thing which have any kind of effect and this one thing is the reason that I will answer this inquiry. That one thing isn't the content, Actors cinematography, VFX, Budget. It is the Audience. 

Indeed you read it right, this is group of onlookers who improves Hollywood much and in front of our bollywood. We don't need a motion picture with great content or acting, we need motion pictures which is brimming with infectious exchanges, activity scenes which influences Newton to cry, an exaggerated performing artist who is playing with numerous young ladies, on-screen character who display there each inch before camera, suggest scenes and the shrieks into the auditorium on these scenes demonstrate the value of these scenes. 

We never take motion pictures as a specialty of acting, method for gathering learning and comprehend the innovation. For us motion pictures are only a bit of amusement in which we need parcel of body introduction and cozy scenes, arbitrary exchanges and Superhuman activity. (Your-Movie-World)

Some way or another this is right on the grounds that the greater part of the Audience are disappointed and confronting issue in their reality and on the off chance that they are burning through ₹200– ₹400 then they need these Masala stimulation. Assume a ricksaw driver will watch film then he should spend his cash on motion picture like Veere di wedding not on Parmanu on the grounds that he need amusement and some light minutes. That is the thing that make issue in Indian film industry. That is the reason we have Karan Johar not Christopher Nolan, on the grounds that these chief and maker knows this that Indian group of onlookers need poo motion pictures with brimming with sexual substance, whizzes and inept activity. There is no understanding of Script writing in a large portion of Indian motion pictures. (Your-Movie-World)

We need to watch these kind of films that is the reason our motion picture creator persistently make these motion pictures.

Few weeks ago, a movie is released Parmanu : The story of Pokhran
John Abraham is the producer and the main actor of this movie, It portrayed the confidential Nuclear test of India in 1998 and shows us the importance of this nuclear test for India at global level and why India need nuclear power and how American intelligence agency CIA continuously spying on India.
A wonderful piece of movie is now in flop list and collected only 20 Crore on Indian box office. Just take a look on IMDB rating of this movie it is whopping 8.5 which shows the content and overall quality of movie but still our Indian Audience is not interested in this movie.
Now come to the next movie which was released last week.
Just look at the rating it's 2.8 out of 10 on IMDb and the fun fact is this movie is the 3rd highest opening day collection in 2018. I think you all know about the content of movie, if you don't know then watch the trailer on YouTube.
These are the some more movies which are masterpiece but failed in collection on box office because of the Great Indian Audience.

Newton IMDb rating 7.8 , another brilliant performance by versatile actor Raj kumar Rao
There are huge number of movies which are much better than hollywood movies but our audience not accept these movies.(Your-Movie-World)
So, why hollywood is better than bollywood?
It is better because their audience are better, because they want better movies and they appreciate their movies ! they are not just like us.