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Induction Motors are usually designed for the highest efficiency around their rated load. In most applications, the motor rating matches the worst-case load, but the motor frequently runs below rated conditions. As the load decreases the motor efficiency decreases and a larger percentage of the input power is in the form of losses. The motor efficiency can be improved by operating the motor at optimum flux by controlling the d-axis current in d-q reference frame in vector controlled drives. In this research paper, loss minimization of induction motor based on genetic Algorithm (GA) is proposed. Here the GA is applied to minimize the induction motor losses in order to evaluate the optimal magnetizing current with respect to the torque and speed. The performance of the proposed drive is demonstrated through simulation in MATLAB/SIMULINK environment and compared the same with conventional FOC without minimization. Result shows that there is considerable loss reduction and improvement in efficiency under light load condition using this method.