"The industry has become more professional, which is very good, but at the same time it is getting very impersonal," Kher said.
"When there were no vanity vans, no mobiles, there was a lot of togetherness. People used to sit down, talk to each other and share their thoughts. But now, there is an aloofness. It is fine but I am a people-oriented person so I do go to my co-stars' vans and talk to them," he added.
The Padma Shri awardee made a mark in Bollywood with his powerful performance in 'Saaransh', after which he did variety of roles like a ruthless villain in 'Karma' to tickling the audiences' funny bone in 'Lamhe'.
"The future of Indian cinema is very bright. Now you can make movies you believe in you don't have to follow a certain formula, which is very good," he added.
"There was a time when it was difficult to imagine small films doing great business but now it is happening. Right from 'Khosla Ka Ghosla', 'A Wednesday' and 'Kahaani' - they are a proof that if small films are made well, they have an audience today, it doesn't necessarily be an art film.
The 57-year-old is against the demarcation of actors as actors and character actors.
"It is very wrong to differentiate between actors or character actors. It is not there anywhere except Bollywood. People classify others as a villains or a comedians. I have always fought that in my life," said the actor.
"You don't see Robert De Niro, Al Pacino as character actors. The kind of contribution Balraj Sahani, Om Prakash, Kanhaiyalal and Mehmood have given is just unbelievable. These people were pioneers of acting and to classify them is not fair," he added.
But, Kher is delighted to note that the distinction is slowly fading away.
"It is good to see that the scenario is changing now. Good actors are demanding their pound of flesh. It is good to see that finally we are getting that acceptance," he said.
Kher, whose film 'Chhodo Kal Ki Baatein' is set to hit the screens Friday, feels that audiences have changed and they want films that stimulate their thoughts.
"Entertainment is different for different people. Some get entertained by laughing, some by crying, some get entertained by getting frightened with a film and some people get entertained by getting stimulated by the subject of the film. Today, we have audience that wants stimulation of thought," he said.