This paper deals with a solar based indirect vector controlled induction motor drive(IMD) for water pumping system. The speed of IMD is estimated by taking stator current and rotor flux as a state variable. It consists of a solar photovoltaic (PV) array, boost converter, voltage source inverter (VSI) and a motor-pump assembly. In spite of atmospheric variation, maximum power point tracker (MPPT) based upon an incremental and conductance (I&C) algorithm tracks maximum power from solar PV array. The proposed system is designed and simulated in MATLAB/Simulink platform and speed control of IMD is demonstrated through simulated results.