Transgenic cotton, such as Bt cotton, is genetically modified to produce insecticidal proteins that target harmful pest insects. Bt cotton was developed using genes from Bacillus thuringiensis bacteria, which produce Cry proteins that are toxic to insect pests but safe for humans. The technology involves identifying effective insecticidal genes, transferring the genes into cotton plants, regenerating transgenic cotton plants, and field testing before commercial approval. Bt cotton provides benefits like higher yields and reduced need for pesticides compared to conventional cotton.