Conduction
Conduction involves a flow of charge carriers in response to an electric field in a conductor. When there is an electric field through a conductor, the free charge carriers in the conductor (for example, the “free” electrons in the case of a metal wire) begin to drift in response to that electric field.
If two conductors are placed in contact with each other, then the electric field can continue from one conductor into the other. If one of the conductors were conducting a current at the beginning, now the second conductor can also start conducting the current. Whenever the electric field across one conductor changes, the electric field across the other conductor also changes. This allows conduction to transfer both direct and alternating currents.
Induction
Induction, an object carrying a varying current causes another current to flow. This can happen because any object carrying a current has a magnetic field formed around it. This magnetic field changes whenever the current flowing through the conductor changes.
The magnetic field is present all around the wire. According to Faraday’s Law, if we place a piece of conductor in a region that has a varying magnetic field, an electric field should form on the conductor and this should cause a current to flow in it. So, if we place a second piece of conductor close to a conductor that is carrying a varying current (such as an alternating current), then a current would be induced in the second conductor, as well.