On my recent trip to Jaipur in April-May 2009, I got some souvenirs for my friends from a pavement stall in Bapu Bazaar. The stall had a mind-boggling array of decorative handmade trinkets and useless nicknacks - pretty cheap if bought in large numbers. But just make sure to take your time to pick and choose as many of the pieces have bad finishing due to poor quality crafting.
A cute tiny elephant keychain:
Anyone for miniature wooden cannon guns??
Of course, how can we forget the iconic Rajashtani Camels? - here are some less than perfect but still cute, small wooden versions: