New Delhi, July 25 -- India's balance of payments (BoP) could return to a small surplus instead of recording a third consecutive annual deficit following a series of measures announced by the Reserve Bank of India (RBI) and the government in June, according to HDFC Mutual Fund's July report.

The report said the measures could ease pressure on the rupee by improving capital inflows and strengthening the country's external position.

"The RBI and government's June measures could turn what could have been a third straight year of balance-of-payments deficit into a small surplus, thereby taking pressure off the rupee," the report said.

According to the report, the RBI's decision to bear the full hedging cost for fresh three-to-five-year FCN...