IMUs are gaining significant importance in the field of hand gesture analysis, trajectory detection and kinematic functional study. An Inertial Measurement Unit (IMU) consists of tri-axial accelerometers and gyroscopes which can together be used for formation analysis. The paper presents a novel classification approach using a Deep Neural Network (DNN) for classifying hand gestures obtained from wearable IMU sensors. An optimization objective is set for the classifier in order to reduce correlation between the activities and fit the signal-set with best performance parameters. Training of the network is carried out by feed-forward computation of the input features followed by the back-propagation of errors. The predicted outputs are analyzed in the form of classification accuracies which are then compared to the conventional classification schemes of SVM and kNN. A 3-5% improvement in accuracies is observed in the case of DNN classification. Results are presented for the recorded accelerometer and gyroscope signals and the considered classification schemes.