"The economy has derailed and its in a bad shape and serious condition. The government is taking measures to bring it back on the track," Rajnath told reporters on a question regarding economy and inflation during a programme here.
He said the government was working in this direction and it would take time for the economic condition to improve.
The Union Minister said the government was taking concrete steps to tame inflation.
Stressing that revival and cleansing of major rivers were among the top priorities of the Narendra Modi government, Rajnath Singh cautioned that if "we failed to save and protect our rivers then our civilisation will be in a grave danger."
He reiterated his commitment to make the Ganga and Gomti rivers clean and said it was an "irony" that people were drinking bottled water and have dumped 'Gangajal' (Ganga water).
"Gangajal is said to be divine and Mokshadayani (one which gives salvation). It is recorded in the history that even emperor Akbar used to consume it," Rajnath said after performing 'Aarti' (prayer) at the Gomti river, termed as 'Adiganga'.
"It is an irony that today people have dumped Gangajal and are consuming bottled drinking water," he added.
The Union Minister said before the elections he had promised to do something for the Gomti river and Lucknow within 100 days of assuming power, and soon after the government formation he constituted a committee to chalk out plans and schemes for the river and the city.
Referring to the creation of a separate department for revival of the Ganga river by Prime Minister Narendra Modi, Singh said he spoke with minister concerned Uma Bharati and asked her that she would have to take the responsibility of the Gomti river as well.
The Union Minister said responding to his request, Bharati has directed the officers of her department to prepare a plan for Gomti as well.