-Three phase induction motors consume 60% of industrial electricity. Just 1% increase in efficiency of all the motors in India will save 500 MW powers which needs the initial generation cost of 2000 crores. Actions were taken to use the enamel filled with SiO2 and TiO2 nanocomposite as the coating for the induction motor to improve its efficiency. The efficiency of the induction motor was increased by 5% by adding nanocomposites of SiO2 and TiO2 (1:3) to the enamel used as the coating for the windings of the three phase squirrel cage induction motor. Heat run test was performed on electrical machines to determine the total loss of energy dissipated as heat. The addition of nanocomposites to the enamel has increased the temperature withstanding capacity of the induction motor. The values of electromagnetic inference produced by normal induction motor and nano coated induction motor was also measured and analyzed. There was a reduction of 15 to 60% in the values of the electromagnetic interference produced by the normal induction motor when compared to that of nanocomposite filled enamel coated induction motor at various distances. This method can be used as one of the method to reduce the electromagnetic interference by the induction motors.