He also said the Centre was prepared to hold talks with the Naxal outfits if they abjured violence and laid down their arms.
"If you compare with previous years, the situation is under control. We have been successful in controlling the problem and will continue with that. The situation today is best in the past 15-16 years...One can see the statistics," he told reporters here when asked if the Centre has effectively reined in Left Wing Extremism.
He was responding to a question about the recent Naxal attack in Chhattisgarh's Dantewada district which left seven jawans dead on May 30.
Regarding the delay in formation of BJP-PDP coalition government in Jammu and Kashmir and whether it does not send out a message of "political instability", Rajnath said, "forming a coalition government sometimes take time".
"Every coalition has its own compulsions. You have to create consensus. As far as BJP-PDP coalition government is concerned I am confident that it will prove true to the expectations of the people of the state," he said.
On Uttar Pradesh government's allegation regarding non-cooperation by the Centre in drought-hit Bundelkhand region, he said every state should first discharge its responsibility.
"Whatever support is required will be given. It had been done so in the past as well. The Centre has hiked states' share in central taxes from 32 per cent to 42 per cent, which in itself is a historic step. The allegation of non-cooperation is baseless," he said.
Earlier at a function, Singh termed farmers as 'annadata' but expressed concern over sharp decline in economic contribution of agriculture to the country's GDP.
The Union Minister said, while agriculture had about 52 per cent share in county's GDP at the time of Independence, it has come down to only 13 per cent.
He said about 60 per cent of agricultural land in the country was still unirrigated, adding that new irrigation projects were being monitored and implemented with efficiency.
Singh appealed to farmers to utilise various benefits being made available through several central government-sponsored schemes.
Later, at a function organised by 'Laghu Udyog Bharati', Singh said that like 'make in India' initiative, a skill India programme has also been launched.
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