The fusion of multispectral (MS) and panchromatic (PAN) images is a useful technique for enhancing the spatial quality of low-resolution MS images. Liu recently proposed the smoothing-filter-based intensity modulation (SFIM) fusion technique. This technique upscales MS images using bicubic interpolation and introduces high-frequency information of the PAN image into the MS images. However, this fusion technique is plagued by blurred edges if the upscaled MS images are not accurately coregistered with the PAN image. In the first part of this letter, we propose the use of the Induction scaling technique instead of bicubic interpolation to obtain sharper, better correlated, and hence better coregistered upscaled images. In the second part, we propose a new fusion technique derived from induction, which is named "Indusion." In this method, the high-frequency content of the PAN image is extracted using a pair of upscaling and downscaling filters. It is then added to an upscaled NIS image. Finally, a comparison of SFIM (with both bicubic interpolation and induction scaling) is presented along with the fusion results obtained by IHS, discrete wavelet transform, and the proposed Indusion techniques using Quickbird satellite images.