This work focuses on the performance analysis of a reduced switch three phase Z-source inverter fed cost effective induction motor drive system. In the proposed approach, instead of a conventional six switch three phase inverter a four switch three phase Z-source inverter is utilized. This reduces the cost of the inverter, the switching losses, and the complexity of the control algorithms. The new Z-source inverter system provides ride-through capability during voltage sags, reduces line harmonics, improves power factor, reliability and extends output voltage range. Validations of the theory and reduction methods are performed experimentally. This proposed method is able to reduce conduction noise in contrast with the existing conventional inverters. Analysis, simulation and experimental results are presented to demonstrate these new features.