Synchronous generator-based power stations with their inherent inertia, can maintain frequency stability during sudden load switching. While distributed generating stations driven microgrids suffer from a lack of natural inertia. Cascaded power, voltage, and current controllers are a widespread control strategy used to regulate the power output of distributed generating stations to maintain frequency and voltage within stable limits. Virtual synchronous generator (VSG) control for the power controller is used as a potential solution to emulate inertia. To derive maximum benefit from VSG, proper tuning of its multiple parameters is required. In this direction, earlier works proposed the equivalence between the droop and VSG schemes which suggested that the droop coefficient value can be directly used in the design of VSG. As an improvement to these conventional works, the proposed work in this paper identifies that VSG delivers a better response when an equalizing constant is used to adjust the droop coefficient value than using it directly. This paper proposes implementing the VSG with equalizing constant as a new design parameter. A description of designing the parameters of this improved VSG considering the equalizing constant is also discussed in this paper. The performance of the conventional VSG and the proposed improved VSG are compared. From the results, it is observed that, at load switching, the output frequency of the proposed method in all test cases has settled in less than 3sec while the conventional method took a maximum of 6sec in critical case. Further, the output frequency’s maximum peak with the proposed method is 3Hz lesser than the conventional method. These, along with other metrics, validate the importance of the proposed improved VSG-based control scheme for the enhancement of transient response in microgrids.