Budding is one of methods of asexual multiplication in which the cell division takes place at one specific site and turns out into an outgrowth. The little knob like projection turning out from the main body is known as a bud. The new life form grows there at the same site and get detached at when fully grown leaving behind the scar tissue. Since the proliferation is asexual, the recently made life form is a clone and is identical to the parent life form.
For example: budding in yeast