Direct Torque Control[DTC] and Vector Control are the two schemes developed for high performance induction motor drives. DTC based induction motors are being increasingly used in various industrial applications. DTC offers fast torque response and better speed control with lesser hardware and processing costs as compared to vector controlled drives. However, conventional DTC suffers from high torque ripple, current harmonics and low performance during torque transients. In this paper a new Direct Torque Control[DTC] method of induction motor is presented. In comparison with the conventional DTC method, the PWM technique is applied to proposed control method. In this method, decoupling mechanism is not required and the torque, the flux magnitude are under control using PI controllers and generating the voltage command for inverter control. Therefore torque and speed ripple could be reduced in comparison with the conventional switching table DTC.