The inductive effect in chemistry is the shifting of electrons along a chain of atoms in a molecule, caused by the presence of an electronegative atom or group. When an electronegative atom is attached to a carbon chain, it pulls electrons towards itself, creating a slight charge difference. This effect is transmitted through the chain, weakening as it moves farther from the source atom. Inductive effect influences properties like acidity, basicity, and stability of molecules in organic chemistry.