In this paper online estimation of stator resistance in indirect vector control (IVC) of Induction motor (IM) is proposed using fuzzy logic controller (FLC). It is renowned that stator resistance of Induction motor which is sensitive to temperature rise in machine leads to performance deterioration as resistance used in controller is dissimilar from actual stator resistance. Here the effect of change in stator resistance is examined in terms of stator current, rotor flux and torque and corrected using fuzzy logic controller algorithm. The proposed algorithm was tested using MATLAB/SIMULINK software and practically implemented in Field programming Gate array (FPGA) Controller.