The microscopic effective reaction theory is applied to deuteron-induced reactions. A reaction model-space characterized by a $p+n+{rm A}$ three-body model is adopted, where A is the target nucleus, and the nucleon-target potential is described by a microscopic folding model based on an effective nucleon-nucleon interaction in nuclear medium and a one-body nuclear density of A. The three-body scattering wave function in the model space is obtained with the continuum-discretized coupled-channels method (CDCC), and the eikonal reaction theory (ERT), an extension of CDCC, is applied to the calculation of neutron removal cross sections. Elastic scattering cross sections of deuteron on $^{58}$Ni and $^{208}$Pb target nuclei at several energies are compared with experimental data. The total reaction cross sections and the neutron removal cross sections at 56 MeV on 14 target nuclei are calculated and compared with experimental values.