MIMO systems i.e. multiple input multiple output systems are the systems which are largely employed for increasing channel capacity and thereby increasing the data rate of the system. The MIMO system helps in increasing the spectral efficiency of a communication system by increasing the number of transmitting and receiving antennas. In this paper, we demonstrate how capacity and spectral efficiency increases with the increase in the number of antennas at the transmitter side. The paper is based on open-loop analysis i.e. the transmitter does not have any knowledge regarding the channel. The implementation is done using MATLAB .