This paper presents an innovative single-stage grid-integrated solar photovoltaic (PV) system for water-pumping applications using an induction motor drive (IMD). The proposed system employs a seven-level diode-clamped multilevel inverter (MLI) to convert DC power from the PV array to AC power for the motor, eliminating the need for an intermediate DC-DC converter. A perturb and observe (P&O) algorithm is utilized for the PV array’s maximum power point tracking (MPPT). Direct torque control (DTC) with space vector modulation (SVM) provides precise speed regulation of the induction motor. The system enables bidirectional power flow between the PV array, motor load, and utility grid, optimizing energy utilization under varying irradiance and demand conditions. The proposed configuration exhibits enhanced efficiency and improved power quality compared to conventional two-stage topologies, offering a promising solution for grid-connected solar-powered water pumping systems.