Charging by induction involves using a charged object to induce a separation of charges within a neutral object without direct contact. By bringing a charged rod close to a neutral conducting sphere, the sphere’s electrons either gather towards or repel away from the rod, depending on the rod’s charge. Touching the sphere while the rod is nearby allows electrons to move to or from the ground, resulting in a net charge on the sphere once the rod is removed. This method highlights the principle of electrostatic induction and the movement of charges within a conductor.