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This lecture covers the fundamental principles of inductive sensors, including the definition of inductance with current and voltage, mutual inductance, and excitation-induced electromotive forces. It explains the concept of coupling factor, impedance of the target, and the modeling of inductance coils. The lecture also delves into the induction of eddy currents in conductive targets, proximity sensors, and the factors affecting inductance and resistance in the target. Additionally, it discusses the advantages of inductive proximity sensors over capacitive sensors in various environmental conditions.