Financial magic.

"The IMF's October 2025 World Economic Outlook forecasts India's GDP growth at 6.6% in 2025, a slight increase from 6.5% in 2024, before easing modestly to 6.2% in 2026." Even though, "Worldwide economic output is expected to decline from 3.3% in 2024 to 3.2% in 2025 and further down to 3.1% in 2026. This drop is attributed to elevated US tariffs," but "While US tariffs have dampened external demand globally, India has weathered the impact better than many." TN. Probably because our goods exports are so small. "India's merchandise trade deficit widened to a 13-month high of $32.15 billion in September, driven by gold and silver imports and a drop in export to the US following President Donald Trump's up to 50% tariffs on Indian goods." "Goods exports to the US fell to $5.43 billion from $6,87 billion in August," while imports from the US rose to $3.98 billion from $3.6 billion. Reuters. "In Q2FY26, exports recorded 9% YoY growth vs a 7% decline in the past year." So, part of the growth could be due to base effect. "Overall, in H1 FY26 (1 April-30 September), merchandise trade deficit stood at USD 155bn vs USD 145bn during the same period last year, with exports up 3% YoY to USD 220bn and imports rising 4.5% to USD 375bn." ET.  "The Indian rupee has become the worst performing Asian currency this year, particularly in August." Foreign investors net sold Rs 238.85 billion Indian stocks in September after selling Rs 349.93 billion in August, wrote Payal Bhattacharya & Manjul Paul. The rupee fell to a low of 88.866 against the dollar on 09 October. in.investing.com. However, according to data from the NSDL, foreign institutional investors (FIIs) bought Rs 30 billion worth of shares in the secondary market as well as Rs 76 billion in the primary market  between 07 and 14 October. ET. The rupee also jumped against the dollar. "The rupee extended its gains on Thursday (yesterday) to settle at around 87.83 per dollar due to a decline in dollar index, and improved investor sentiment after heavy dollar sales by the Reserve Bank of India (RBI)." BS. "In June, the central bank had announced a phased 100-basis-points CRR cut from September to November to release about Rs 2.5 trillion ($28.3 billion)," freeing up funds "that banks must otherwise park with the central bank, boosting liquidity and typically easing short-term rates." But selling of dollars, to support the rupee, and maturing foreign exchange forwards is draining liquidity. Reuters. "The RBI has built up short dollar positions of at least $15 billion in the non-deliverable forwards market over the past two to three weeks to defend the rupee, Bloomberg News reported." ET. Amid all this incomprehensible confusion the RBI makes so much profits that it transferred Rs 2.69 trillion of surplus in 2024-25 to the government in May 2025. MC. This is financial magic. And the governor is the magician.