This article provides an interval type-2 fuzzy-based direct torque control (IT2FDTC) of the induction motor drive (IMD) in which the space vector modulation technique is used here to activate a five-level diode-clamped inverter (FDCI). Moreover, it is implemented with the help of the DSPACE-1103 controller in a real-time application using 2HP induction motor and its overall performance is compared with a conventional proportional-integral direct torque control (CPIDTC). In IT2FDTC, all four capacitor voltages of FDCI based on minimum energy principles are balanced well and settled back quickly with fewer peak overshoots than CPIDTC during various operational conditions. In addition, it can provide lesser torque and flux ripples with a fast dynamic performance of IMD over a CPIDTC. A 3-D Mamdani type-2 fuzzy controller along with the centroid method is used in IT2FDTC. Hence, the proposed method of study not only controls the gains of proportional integral effectively but also controls the duty ratios of a modulating wave to further improve the dynamic performance and current profile of IMD.