External Commercial Borrowings or ECB as it is widely known, is a popular form of external debt. It is an important component of capital flow along with the other components such as Foreign Direct Investment (FDI) and Portfolio Investments. External Commercial Borrowings show a growing trend over the decade, many reasons can be attributed for such growth. This project report will focus on the components of capital flows, basic overview of their role in the economy and in detail about ECB(s). It would also cover whether debt is preferred over equity and if so, domestic debt or foreign debt? This material should give one a fair idea of what exactly an external commercial borrowing is, how it can be availed, what are the guidelines currently prescribed by the RBI and how its trend has been changing over the years. However, the main objective of this study is to obtain feedback from corporates and suggest changes to the existing ECB guidelines framed by the Reserve Bank of India.