Dilli Haat located opposite INA market in South Delhi is Jaya Jaitly's brainchild. It was set up in 1994, jointly by Delhi Tourism, Government of Delhi and NDMC, D.C. (Handicrafts) and D.C. (Handlooms), Ministry of Textiles and Ministry of Tourism, Government of India. It is (deliberately) made as a place for equalization of customers and crafts people. The immense popularity of the concept can be gauged from the tremendous public interest it receives even today with youngsters, families, tourists and foreigners thronging the place and patronizing the various products on display.
Dilli Haat actually transports you to the magical world of Indian art and heritage presented through a fascinating panorama of craft, cuisine, workshops and cultural activities. These are (sometimes) cross-country as well. Since the sellers come to the Haat on a rotation basis, products vary from time to time. But one can get to witness handicrafts from all parts of India under one roof.
For more details: http://dsource.in/resource/dilli-haat