drag is observed because part of the mechanical energy input is converted into electrical energy. so there is less mechanical energy converted into kinetic energy, thus the spinning coil moves slower than it is when all the mechanical energy input is converted to kinetic energy, hence it seems that drag is induced.
drag is a more appropriate word when you have fluid flow acting against the motion of the body of interest. if the density of fluid is very small, eg. air, and the area of surface normal to the fluid flow is small, drag can be neglected.