Sentence:  Hindi cinema has been guilty of stereotyping the “<WSD>Madrasi</WSD>” since the days of Mehmood. ... The “<WSD>Madrasi</WSD>” usage probably stems from the days of the British Raj when the Madras Province covered Tamil Nadu, parts of Kerala (excluding Travancore) and Andhra Pradesh and even Karnataka (excluding Mysore) and thus anyone from the South was automatically presumed to be from the Madras Presidency…a <WSD>Madrasi</WSD>. 
Meaning of the word marked with <WSD> tags:  ("by extension") A native of South India; a person of South Indian extraction ("exonym; often considered offensive").