It was low RAM problem.
SSD1306 takes 1K, with MPU6050 the and serial print which I have included the remaining RAM is 5 bytes only, hence the initialization issue.
I followed simple guideline to reduce RAM footprint
Read this thread Checking memory footprint in Arduino - Stack Overflow
Code to print available SRAM.
Serial.print(availableMemory());
// free RAM check for debugging. SRAM for ATmega328p = 2048Kb.
int availableMemory() {
// Use 1024 with ATmega168
int size = 2048;
byte *buf;
while ((buf = (byte *) malloc(--size)) == NULL);
free(buf);
return size;
}