Avenida Petit Thouars in Miraflores is lined with numerous handicraft shops, and the Indian Market (Mercado Indio) is one of the biggest and best. If you’re looking for one-stop souvenir shopping, the Indian Market is your best bet, as it’s packed with vendors selling all variety of Peruvian crafts: silver, alpaca wool, ceramics, wooden carvings, paintings and inexpensive fossilized shark teeth.
If you’re planning to do some shopping in the Indian Market, prepare to do some bargaining, and if you’re in the market for high quality silver or alpaca, it helps to know the difference between the good stuff and the mass-produced items before you go. If it sounds too cheap to be true, it likely is.
Be aware that while you’ll see artifacts and fossils on sale at the market (and it’s legal to buy them), it is not legal to carry them out of Peru.