An induction motor operates on the principle of electromagnetic induction. It consists of a stationary stator and a rotor that rotates inside the stator. When alternating current is applied to the stator windings, it produces a rotating magnetic field that induces current in the rotor windings, causing the rotor to rotate. There are two main types - single-phase and three-phase induction motors. Single-phase motors require additional mechanisms like split-phase or capacitor-start to self-start, while three-phase motors are self-starting. Induction motors are widely used to power various industrial machinery, appliances, and equipment due to their simplicity and reliability.