This paper presents voltage and current control strategy for grid connected variable speed wind turbine induction generator employing two and three level voltage source inverters. Induction generators are widely used because of its low cost, robust construction and capability of feeding active power to load without getting reactive power from separate source. The mechanical energy required to drive the generator is obtained from a variable speed wind turbine. Three phase induction machine is excited from a three phase voltage source converter. The DC voltage of the capacitor is inverted and fed to the three phase grid using a current controlled voltage source inverter. Control strategy has been developed for maintaining the DC link voltage constant and also to feed the power at unity power factor to the grid, even though there is variation in wind speed. It is also shown that the harmonics are considerably reduced when a two level inverter is replaced by a three level inverter. The simulation study has been carried out using MATLAB/Simulink. Simulation results indicate the feasibility of control strategy.