According to the model of inertial induction proposed earlier, the inertia force consists of an acceleration-dependent term which comes out as identically equal to -ma. Besides, there is a velocity-dependent term which is exceedingly small to be easily detected. However, it has been shown that this results in a cosmological red shift of light coming from distant stars and galaxies; the magnitude of the red shift agrees very well with the observed values. Though this model yields correct results when applied to photons it needs modification before applying to other bodies. A modified form of the inertial induction model is now proposed where the proposed velocity-dependent inertia forces, when applied to the solar system, yields correct order of magnitude for the secular retardation of the earth’s rotation. Moreover, a combined model using the velocity term and the tidal friction also does not suggest any close proximity of the moon to the earth in the past. When the model is applied to the case of Phobos, a secular acceleration of the order of magnitude of 10⁻³ deg yr⁻² is obtained.