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Bollywood is great dancing music.  I currently have a non-South Asian friend hooked to a song called "Kajra re."  She says it makes her wanna shake her booty everytime she hears it.  This list could be sooooo long but I'm gonna hold back and just suggest some songs that I would use to get the crowd movin' and shakin'.  You can find most of these songs on iTunes.

Kajra Re from Bunty aur Bubli 

Push it up by Jay Sean (Bhangraton version) 

U 'n' I from Hum Tum

Lal Ghagra by Sahara featuring E=MC

Salaam Namaste from Salaam Namaste

Beware the Boys by Punjabi MC 

Dance pe Chance from Rab ne Bana de Jodi

Mauja hi Mauja from Jab we Met

Dard-e-Disco from Om Shanti Om

Dus Bahane from Dus

Mehndi Laga ke Rakhna from Dilwale Dulhania Le Jayenge

Aaja Nachle from Monsoon Wedding

Jhalak Dikhlaja from Aksar but I think there's a remix out there that's better

Barso Re from Guru

Mast Kalander from Heyy Babyy

Deewangi Deewangi from Om Shanti Om

Mahi Ve from Kal Ho na Ho

Lodi from Veer-Zaara

Ladki Badi Anjani Hai from Kuch Kuch Hota Hai

Dance With You by Jay Sean and Rishi Rich

Dhoom Machale from Dhoom or Dhoom 2

Dhoom Tana from Om Shanti Om

Jhoom Barabar Jhoom aka Jhoom from Jhoom Barabar Jhoom 

Nach Baliye from Bunty aur Bubli

Desi Girl from Dostana

Phir Milenge Chalte Chalte from Rab ne Bana di Jodi

Okay, I think that should be a good dancing primer.  The above songs are just dancing songs.  If you want slower songs as well, let me know! 

There may be a few songs on the Slumdog Millionaire soundtrack that could be what you're looking for.  A lot of the tracks were composed by a A.R. Rahman, who has done lots of Bollywood movies.  Also, the soundtrack is just awesome in itself.