As in any ancient country, India's modernizing plunge into the 20th century has produced its fair share of trinkets and tinsel, but its traditional craftwork continues at the highest  silks, carpets, jewelry, perfumes, brassware, and wood-carving are first class, and you will have the added bonus of dealing with the most charming bunch of merchants in the world.
Silks, carpets and jewelry can still be bought in India.