High-performance industrial drives widely employ induction motors with position sensorless vector control (SLVC). The state-of-the-art SLVC is first reviewed in this paper. An improved design procedure for current and flux controllers is proposed for SLVC drives when the inverter delay is significant. The speed controller design in such a drive is highly sensitive to the mechanical parameters of the induction motor. These mechanical parameters change with the load coupled. This paper proposes a method to experimentally determine the moment of inertia and mechanical time constant of the induction motor drive along with the load driven. The proposed method is based on acceleration and deceleration of the motor under constant torque, which is achieved using a sensorless vector-controlled drive itself. Experimental results from a 5-hp induction motor drive are presented.