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Voltage sag is one of the most significant power quality problems in the industry and has a significant impact on induction motor safety and stability. This paper analyzes the characteristics of voltage dips in power systems and induction motors with a special emphasis on balanced dips with the help of virtual grids (regenerative grid simulator), as per IEC 61000-4-11. Three phase induction motors with 3.3 kW, 16 A coupled to a DC generator with 3.7 kW, and 7.8 A rated are considered for the test analysis. This paper aids in the development of an induction motor to achieve improved precision by taking different voltage sags into account. The experimental results benefit the design modifications of induction motors at industrial and other commercial levels of consumers regarding major power quality issues and the behavior of the induction motors. A proposed modification employing ANSYS is provided to further examine the precise performance of induction motors during sag events.