The characters in mainstream Indian films converse in Hindustani (Hindi/Urdu) language. Though because of British rule until 1947, English has found its way as one of the official languages in military, legislation and government offices. The primary language for higher education (Engineering/Commerce/Law) in India is also English.
In India, English is linked with modernization and urbanization. We try to speak English to convey others that we have received better education. We also use English to express sudden/intense emotions like *beep* and "Oh no!" kind of stuff. So, though annoying, you'll find such phrases more often in Hindi cinema.
Besides, I think "A Wednesday" is an offtrack films and doesn't provide a good reference of Bollywood. Try films like "Sholay", "Devdas" and "Lakshya" with subtitles.
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