This is a clay votive from Molela, a village of terracotta workers in the Rajsamand district (southern Rajasthan, near Nathdwara / Udaipur). The votives contain motifs and stories related to tribal legends and gods. They are also sold at other festivals in Rajasthan.
They use brown clay from the riverbed, combined with geru (red clay), yellow clay and ash. The binding agent is primarily dung from cows, donkeys and goats. Cowdung and dried cactus are used as fuel to bake the terracotta.
This article has a good set of explanations with photos: http://rajsamand.nic.in/molela.pdf
Here's a map Deepa made showing how to get to this village: http://goo.gl/maps/XmBSE