The biomedical research projects being conducted by all 32 scientific organisations of the ICMR spread across the country were being affected owing to the resource crunch, it said.
"The Committee observes that in view of the dynamic international health research environment and the current and future health challenges, the role of ICMR is very crucial and if its projects are plagued with underfunding, it can have very serious repercussion and undermine the desired outcomes in the health sector.
The panel suggested that the research initiatives be prioritised on the basis of their application in the public interest.
"The Committee observes that the high priority research initiatives like TB, cancer, anaemia and nutrition which are affecting people from all strata of the society need more attention and therefore more funds are required.
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"The Committee recommends that the department should ensure that the research initiatives be prioritised as essential on which no compromise can be allowed," the report said.
"The Committee notes that research is an important component with further innovation and breakthrough of medicines for fighting diseases.