[icernet] Is sex no longer a dirty word in Indian cinema?

[Arul Selvan]

Yes it is. Families are uncomfortable watching such intimacy on film:
Karan Johar Film-maker

I don't think the Indian film market is ready for explicit sex scenes
just as yet. A sizable sector is made up of family audiences, many of
whom are uncomfortable watching sexual intimacy on screen. We can
neither ignore this sector, nor pressurise them into dropping their
inhibitions.
http://timesofindia.indiatimes.com/cms.dll/html/uncomp/articleshow?artid=35499598

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No. Prudishness isn't a part of Indian cinema or the Indian psyche:
Nikhat Kazmi
Take your pick. Bollywood's trade journals carry two advertisements this
week. One collates the first week collections of Jism and the other
announces the forthcoming release of Pyaasa Jism.
http://timesofindia.indiatimes.com/cms.dll/html/uncomp/articleshow?artid=35499520