He was 84.
Jain was suffering from age-related problems and had been ill for some time.
"He had not been eating well for the past two weeks. He became very weak and this morning, he passed away peacefully," his son Bhuvnesh Jain said.
The cremation will take place tomorrow.
Jain, who began his career as a teacher, was honoured with the Padma Shri for social service in 1989.
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He worked towards conservation of folk art of Western Rajasthan.
The only Padma Shri awardee from Barmer, he started an organisation "Society to Uplift Rural Economy" (SURE) to work for the betterment of poor in the district.
Jain also became a youth coordinator at Nehru Yuva Kendra Sansthan in Barmer.
He is survived by his wife, three son and a daughter in the family.
As the news of his demise spread, hundreds of residents, public representatives and social activists reached his house to pay homage.