CNBC's Inside India newsletter: India's deepening ties with natural gas

This report is from this week's CNBC's "Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Like what you see? You can subscribe  here.

India is hungry for energy, and it's doing something about it.

As the country's population grows — already the world's largest — and becomes wealthier, its energy demand is expected to rise.

It's no wonder then that the South Asian nation aims to quadruple its natural gas use from the current level by 2030 to meet that demand and enable GDP growth rates of seven or eight percent annually.

However, many readers might ponder why India is buying into an energy source that nearly brought Europe to its knees only a few years ago.

The Russian invasion of Ukraine came alongside skyrocketing gas prices across Europe as Moscow turned off the taps and nearly held the continent's economy hostage. The nature of the gas market, then, meant buyers begged, bribed, or bullied sellers into supplying gas to keep their lights on.

So why does India want to deepen its ties with such a volatile energy source?

It might not have a choice and maintaining the status quo means rising energy security risks as its economy grows.

Currently, more than 80% of India's energy needs are met by coal, oil and solid biomass, according to the International Energy Agency. Both coal and oil imports have risen rapidly as the population takes a liking to round-the-clock electricity and car ownership.

Oil accounted for more than 70% of imports in Russia, Iraq and Saudi Arabia — three countries that don't have strong democratic credentials.

On the demand side, the Indian government has aggressively pushed policies that favor