Agra's signature crafts are marble inlay work (the same parchin kari technique used at the Taj — small boxes, table tops, chess sets), leather (the Agra cantonment has a long tradition of shoemaking), and zardozi embroidery in gold and silver thread. Petha sweets are an edible souvenir worth carrying home.
The Kinari Bazaar behind the Jama Masjid is the old shopping district; Sadar Bazaar in the Cantonment is more modern. The government-run U.P. Handlooms emporium on Mahatma Gandhi Road has fixed prices and reliable quality for those uncomfortable bargaining. Be wary of "marble factories" that touts will direct you to — much of what is sold as marble inlay is in fact made of soapstone.