The main purpose of this paper is to explore the nature, magnitude and consequences of economic incentives provided by the various trade industrialisa- tion policies of the government to different manufac- turing sectors of the Bangladesh economy. The paper is divided into three sections. Section 1 briefly recounts the background and nature of various trade and industrialisation policies pursued by the government of Bangladesh. Section 2 discusses a few analytical pro- blems in the theory of effective protection. Section 3 deals with the actual problems in estimating effective rates of protection in Bangladesh, sources of data and analysis of the results obtained. Finally, there is an interpretation of the results with some concluding remarks.