"It's tremendous news. I saw Greg not so long ago and told him it would be the best thing that could happen for Indian cricket," Engineer was quoted as saying in interview to BBC Sport.
"For some strange reason, the Indian mentality has been such that they would respect and listen more to a foreign coach. Don't ask me why."
"Greg is not just any foreigner. He's come with a tremendous reputation as a player and a coach and his man-management skills are important too," Engineer said.
Engineer said that John Wright did a fairly good job during his stint as coach.
"John Wright did a very good job but losing four games in a row to Pakistan just wasn't acceptable to the Indian public," he said.