An attempt has been made in the present work to improve the dynamic and steady state performances of the vector controlled induction motor drive. Input-output linearization technique is used to linearize the model of drive system and decouple the flux and torque loop. State feedback controllers are designed for the linearized system using pole placement technique to obtain desired dynamic and steady state responses. Test results show that the performance of the drive system with the proposed control technique and designed controller is an improvement over the vector controlled drive and the proposed drive system is more flexible.