According to the IEA report, the projected growth rate of India's natural gas demand for the year 2023 is 4%.

Reasons behind the projected growth rate of 4%:

1. Increasing use of natural gas in power generation: India has been gradually shifting its focus towards cleaner energy sources, and natural gas is one of them. The government has been promoting the use of natural gas in power generation due to its lower carbon emissions compared to coal. This shift in energy mix is expected to drive the demand for natural gas in the country.

2. Expansion of city gas distribution networks: India has been expanding its city gas distribution networks to increase access to natural gas in urban areas. This includes the development of infrastructure for piped natural gas (PNG) and compressed natural gas (CNG) for households, commercial establishments, and vehicles. As more cities are connected to these networks, the demand for natural gas is expected to increase.

3. Industrial demand: Industries in sectors such as fertilizers, petrochemicals, and steel are significant consumers of natural gas. With the growth of these industries and their increasing reliance on natural gas as a feedstock or fuel, the demand for natural gas is expected to rise.

4. Transportation sector: The government has been promoting the use of natural gas as a fuel for transportation to reduce pollution and dependence on oil imports. This includes the development of natural gas vehicles (NGVs) and the establishment of LNG (liquefied natural gas) infrastructure for long-haul trucks and buses. The increasing adoption of natural gas as a transportation fuel is expected to contribute to the growth in natural gas demand.

Conclusion:
Considering these factors, the IEA report projects a growth rate of 4% for India's natural gas demand in 2023. This indicates the country's increasing focus on cleaner energy sources and the efforts being made to expand the usage and availability of natural gas.