Squirrel Cage Induction Motors are the widely used motors in Industries due to its simple construction, robust design and low operational costs. The utilization of Squirrel Cage Induction Motors with electronic inverters present greater advantages on cost and energy efficiency, compared with other industrial solutions for varying speed applications. The induction motor with inverters gives excellent speed torque control characteristics. In this paper, a transient behavior of a 3HP, 4 Pole, 50 Hz, 1430 rpm Squirrel Cage Induction Motor has been analyzed. The open and closed loop induction motor is fed Into Pulse Width modulation (PWM) inverter model developed in the recent Matlab/Simulink environment. The Sinusoidal Pulse Width Modulation (SPWM) variable speed drives are increasing these days and used in various industrial applications with superior performance. Since the developments in power electronics and semiconductor technology have led to improvements in power electronic systems, consequently variable voltage and variable frequency control is obtained by Voltage Source Inverters (VSC). In Induction motor drives, SPWM inverters make it possible to control both frequency and magnitude of the voltage and current applied to the motor. As a result, PWM inverter- powered motor drives are more variable and offer in a wide range better efficiency and higher performance when compared to the fixed frequency motor drives. These inverter fed-motors are recently gathering great popularity for multi-megawatt industrial drive applications. In this present paper, the open and closed loop induction motor fed with PWM inverter model has been discussed and focused on transient characteristics of the motor. The direct torque control method is used to control the induction motor in closed loop.