The world was also entering into an era of abundant dollar liquidity with the Fed Fund Target rate falling from 6.5% in January 2001 to 1.75% in January 2002, then to 1.25% in January 2003 and finally, to 1% by July 2003.
It is a different thing that seeds of a crisis that would overtake the global financial system five years later were allegedly being sown and nurtured by the overhang of cheap global liquidity. But, the markets and market participants were relaxed and we at Reserve Bank were mostly concerned with dealing with the after-effects of capital inflows.