What are A, B, and C grade movies?

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In Indian cinema, movies are often categorized as A, B, or C grade based on content, budget, and target audience. A-grade movies are high-budget, star-studded films with mainstream appeal, quality production, and wide releases. B-grade movies have moderate budgets, lesser-known actors, and may include sensational themes or action but lack top-tier production value. C-grade movies are low-budget, often made for niche audiences, and may feature adult content, poor scripts, or amateur filmmaking. These categories reflect market positioning rather than official quality standards and are commonly used in film trade circles.