Kashmir is renowned for its distinctive and fine handicrafts. Many of these developed when Srinagar was an entrepot on the ancient trans Himalayan trade route. Kashmiri shawls are world wide renowned for their softness and warmth. The best are Pashmina and Shahtush. The Kashmiri Shawls are thus the luxury items their manufacture remaining an important source of employment in the valley.

Hand knotted carpets are available in pure wool and mixed with cotton and silk. The pattern tend to the traditional, the Persian and bukhara styles being common though figurative designs such as the Tree of life are becoming increasingly popular. A large carpet take months to complete, the price depending on the density of knots and material used, silk being by far the most expensive. After knotting the pile is trimmed with scissors, loose threads burnt off and the carpet washed and dried.