1) Torque is produced in an induction motor due to the interaction between the rotating stator flux and currents induced in the rotor coils. 2) As the stator flux rotates, it induces sinusoidally varying voltages in three rotor coils placed 120 degrees apart, causing currents to flow in the coils. 3) The currents in the rotor coils interact with the rotating stator flux to produce a torque that tends to rotate the rotor in the same direction as the stator flux.