In an interview with The Hollywood Reporter, Kapoor added that she felt the portrayal of women in Bollywood has worsened since the '60s.
"Unfortunately, things have actually gone downhill since the golden era of the '60s, which had great films with such beautiful portrayals of women such as Bandhini and Sujata. Back then, male actors were not afraid to put actresses in the forefront with these characters," she explained.
"But during the '80s, it went downhill, as women were usually objectified and shown as props in the film. Of course, there were exceptions. My dad (Anil Kapoor) has done films with very strong women characters for the time, such as Mr India and Beta. But the industry became male-dominated through the '90s and even now, to an extent, with the 'item' song culture."
The Players star said that while there are more women-centric films, the blockbusters continue to objectify women.
"There are exceptions today as well with actress Vidya Balan's roles in Kahaani and No One Killed Jessica. And she did a great job in The Dirty Picture, which showed how women were portrayed in '80s cinema.
"But today, the really big films - those which cross the coveted rupees one billion mark at the box office - objectify women. I have stayed away from that. I think actresses need to set an example. I don't want to be a part of that [objectification], as these portrayals are not done in a nice way. They are not done to show the women as strong, but to show them as objects."
The 27-year-old actress said she does not believe however that cinema has a role in inciting violence against women.
"You can't blame cinema for that. Art reflects society. Cinema doesn't dictate - you portray what the society demands. The mindset of people has to change when society changes," explained Kapoor.
"It will take a while. I feel that now we are becoming more aware of the issue it's a slow and steady start to increasing this awareness."
The actress, who stars in Bhaag Milkha Bhaag opposite Farhan Akhtar, said she hoped Indian directors would address the issue in their films.
"I liked how Farhan Akhtar [a leading Bollywood actor and director] approached talking about the overall issue over women's security in India. He has taken it very seriously, coming from a man who has two daughters and a sister.
"I hope filmmakers like him address this issue in future films. Similarly, Shekhar Kapur would be appropriate to do movies on this subject."
Mission: Impossible - Ghost Protocol star Anil Kapoor said that he was proud of how his daughter approached her film career and that she would not settle for being just "a decorative element" in a film.