The rail track rocket sled (RTRS) national test facility at Terminal Ballistics Research Laboratory (TBRL) has been established to provide simulated flight environment for carrying out aero dynamic studies, terminal studies and kinematic studies of variety of test articles. The sled velocity is a critical parameter in evaluation trials. This velocity is also used to ensure that the maximum speed and allowable g loading does not exceed the value which the test article will experience under free flight in air1. Overseas, the facilities have been set up to attain velocities ranging from sub-sonic to hypersonic2. The rocket sled at TBRL can be presently accelerated to travel along the rail track at velocities up to 500 m/s and capability is being built to increase velocity beyond 500 m/s. Signals acquired from existing magneto-inductive arrangement have been analysed in the present work. The experiments indicate that with increase in velocity the rate of change of flux increases, the amplitude of induced emf also increases but terminal voltage decreases and shape of the acquired pulse gets distorted. The parameters of magneto-inductive pick up have been modified in such a way that there is improvement in amplitude and shape of the received pulse with increase in velocity. The improved signals have been analysed and simulation results validated with feasible experiments. This paper also discusses issues, challenges and proposes recommendations in improving the sensor for measurement of velocity beyond Mach 1.5. It has been found that it is prudent to reduce the inductance by reducing the number of turns and changing the core from soft iron core to air core which will improve the response of inductive pick up coil at high velocity. Defence Science Journal, 2014, 64(2), pp. 143-151. DOI: http://dx.doi.org/10.14429/dsj.64.5034