In the traditional system modeling of induction motors, the neglect of digital delay results in inaccurate modeling, which exacerbates the cross-coupling between the two currents in the current loop, leads to serious problems such as current distortion of the low-switching frequency drive system, system instability, etc. Using the neutral theory, a neutral-based current decoupling control method for induction motors is proposed, and a neutral current controller is designed. The current control method has the advantages of automatic parameter tuning, small coupling, fast response, and good robustness. The theory solves the influence of the digital delay problem on the control performance of the drive system by establishing an accurate mathematical model. The stability analysis of a neutral type time-delay system for induction motors is carried out. Simulation and experimental results show the feasibility of the designed neutral current controller.