A new field-oriented control strategy for induction motor is proposed in the paper. It is called Maximum Torque Per Watt (MTPW) and allows obtaining the minimum value of the sum of the stator and rotor losses due to joule effect, and of the iron losses, for a given value of the reference torque and of the motor speed. Iron losses have been modeled according to Steinmetz equation, separating hysteresis and eddy currents and taking into account the dependence both on the frequency and on the peak value of the flux density. Numerical and experimental results are presented to confirm the validity of the proposed approach, which allows achieving significant improvements in the efficiency of induction motor drive.