I recall now, the shells in Unix - a child inherited the variables declared in its parent but not vice-versa. It works the same way in DOS. So, I wasn't seeing it clearly earlier. I am seeing it clearly now. I was imagining that the PYTHONPATH had some default value on installation and was expecting to see it. And since it was an *environmental* variable I was setting, I just expected it to turn up in the entire environment, totally forgetting the scope of the environment I was declaring it in - a process and not an OS.
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