Fodor's Expert Review Central Cottage Industries Emporium
The Mumbai branch of this government-owned chain is a decent place to buy souvenirs—though you won't be doing any bargaining, as all prices are fixed (and likely more than you'll pay elsewhere). It's therefore a good way to establish an upper bound for prices before you do any haggling in other places. It's packed with textiles, carvings, and myriad other traditional Indian handicrafts from all over the country, and there's a small but imaginative assortment of Indian costumes for kids, and traditional Indian toys. Mirror-work elephants, Indian dolls, wood and cane doll furniture, tiny brass tea sets, stuffed leather animals, and puppets can all be found on the second floor, as can kurtas and long skirt ensembles in cotton and silk.