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The first Malayalam film, "Balan," was released in 1938, marking the beginning of the industry. However, it wasn't until the 1950s and 1960s that Malayalam cinema started gaining popularity, with films like "Nirmala" (1938) and "Mudassar" (1947). The 1970s and 1980s saw the rise of socially relevant films, known as "parallel cinema," which tackled complex issues like poverty, inequality, and social injustice.