Vector control technique is being widely used in ac motors drives for precise dynamic control of torque, speed and position. The application of vector control scheme to the induction motor drive and the complete modeling, analysis and simulation of the drive system are presented in this thesis. State space models of the motor and the speed controller and the real time models of the inverter switches and the vector controller are integrated to model the drive. Performance differences due to the use of PWM and hysteresis current controllers are examined. Simulation results of the torque and speed drive systems are given. The drive system is linearised around an operating point and the small signal response is evaluated.