An Observer investigation into children making clothes has shocked the retail giant and may cause it to withdraw apparel ordered for Christmas

Amitosh concentrates as he pulls the loops of thread through tiny plastic beads and sequins on the toddler's blouse he is making. Dripping with sweat, his hair is thinly coated in dust. In Hindi his name means 'happiness'. The hand-embroidered garment on which his tiny needle is working bears the distinctive logo of international fashion chain Gap. Amitosh is 10.

The hardships that blight his young life, exposed by an undercover Observer investigation in the back streets of New Delhi, reveal a tragic consequence of the West's demand for cheap clothing. It exposes how, despite Gap's rigorous social audit systems launched in 2004 to weed out child labour in its production processes, the system is being abused by unscrupulous subcontractors. The result is that children, in this case working in conditions close to slavery, appear to still be making some of its clothes...

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