External commercial borrowings are no longer attractive as they used to be, Pranav Chawda, CEO JP Morgan Chase Bank India, said in a panel discussion in the CareEdge Debt Market Summit on Tuesday, adding that ECB rates are driven by global rates. “..less from the investors (perspective) or the banks who are offering ECBs but more from a borrower’s point of view today, ECBs are no longer looking as attractive as it was in the past. And most of the borrowers are now not looking at ECBs and comparing the headline coupon rate,” he said. He added that they’re pricing in everything now — hedging costs, currency risk and the opportunity cost. For an exporter, if domestic rupee funding is roughly the same cost as an ECB, it’s preferable to take a dollar forward premium instead of borrowing overseas, he said. According to the latest data by the Reserve Bank of India (RBI), India Inc’s ECBs were down 30% to $ 42.9 billion in FY26 from $ 61.2 billion in FY25. The sharp decline is largely driven by higher hedging costs amid year-long geopolitical uncertainty, including tariff tensions and the West Asia war.