Suppose a metal plate is kept in a magnetic field. On the surface of the metal plate, we can imagine a loop, which will be associated with a magnetic flux due to the magnetic field. As the magnetic field is changing, there is change of magnetic flux through this loop and so an electric current is going to be induced in the loop, which is known as the eddy current.
Electromagnetic Induction is a current produced by the voltage production due to a changing magnetic field. This happens in one of the two conditions:-
When we place the conductor in a changing magnetic field.
When the conductor constantly moves in a stationary field.