A voltage source inverter is commonly used to supply a three-phase induction motor with variable frequency and variable voltage for variable speed applications. A suitable pulse width modulation technique is employed to obtain the required output voltage in the line side of the inverter. The different methods for PWM generation are broadly classified into Triangle comparison based PWM and Space Vector based PWM. Space Vector Pulse Width Modulation (SVPWM) method is an advanced, computation intensive PWM method and possibly the best among all the PWM techniques for variable frequency drive applications. The SVPWM is an alternative method for the determination of switching pulse width and their position. This method has been finding widespread application in recent years because of the easier digital realization and better dc bus utilization. 2-level inverter is the first model developed using this technique. In SVPWM methods, a revolving reference voltage vector is provided as voltage reference instead of three phase modulating waves. The magnitude and frequency of the fundamental component in the line side are controlled by the magnitude and frequency, respectively, of the reference vector. This paper describes comparison of 2-level SPWM and 2-level SVPWM inverter fed induction motor. This project also describes step by step procedure how to implement 2-level SVPWM technique for three phase inverter. All the methods are simulated and results are obtained using MATLAB/SIMULINK. Speed response and THD levels are compared. From the results it is concluded that the dynamic response is improved and THD level of input current to induction motor is reduced in case of SVPWM when compared to SPWM.