Purport

In earlier shlokas of this chapter, Bhagvan Shri Krishna presented a comparison between Karma Yoga and Sanyas to Arjuna to prove why Karma Yoga is superior to Sanyas. The common perception is that Sanyas is the best way to detach from the bounds of action. In fact, in all earlier Shlokas of this chapter and in earlier chapter 3(Sh4-5) Bhagvan Shri Krishna has described that renouncing Karma is not an option for any living being. Even Sanaysi has to do something. The real renunciation (Sanyas) is to renounce the fruits of action and not duties.

In this Shloka Bhagvan Shri Krishna further explains how to achieve freedom from the reaction of action by Karma Yoga. Any human who performs his prescribed duties surrendering the results of the same to Shri Krishna, the Supreme Personality of Godhead becomes free from bounds of actions. Shri Krishna presented a perfected example of it. Humans should live in this world the same way Lotus in water. He should use the material world for the peaceful and happy physical existence while keeping himself focused on the Supreme Lord and detached from any desires of fruits.

This is the perfect way of using this pious human body to both achieve peace in this mortal world and achieve Moksha after departing from this body.