Electromagnetic induction was discovered independently by Michael Faraday and Joseph Henry in 1831.In Faraday's first experimental demonstration he wrapped two wires around opposite sides of an iron ring.

Electromagnetic induction is the production of an electromotive force across a conductor when it is exposed to a varying magnetic field.

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When the magnetic flux passing through a conductor is changed in time, then an electromotive force is induced in the conductor.

emf = - rate of change of magnetic flux.

emf opposes the change of magnetic flux.

Suppose we have a conductor bent in the form of a loop (circular or rectangular) and put it in a time varying magnetic field, then an emf is induced in the conductor loop and current flows through it.

This is the principle of A.C. generator.