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Explain budding in hydra with the help of labelled diagram.

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Answer
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Hint: Budding is a type of asexual reproduction that is seen in mostly hydra and yeast. As you know yeast is a unicellular organism so we can say that it can be seen in both unicellular as well as in multicellular organisms. Here the progeny develops as an outgrowth from the parental body. This outgrowth is called a bud. The progeny that develops from budding will be identical to its parent.

Complete solution:
In hydra, this process is initiated due to an increase in the division or multiplication of cells at a particular site. In this way, a protuberance develops at that site. Slowly and gradually this protuberance takes the shape of a bud.
It gradually develops into the shape of its parent and may remain attached or can leave the site of attachment leaving behind a scar.
Sometimes colonies can be formed at the site of attachment.
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This site of attachment of the bud that formed can be anywhere but mostly it occurs at some specialized site.
Most of the time a bud that's formed of a bud of hydra detaches to turn into a brand new organism. The newly evolved organism stays connected because it grows further. It is separated from the parent organism after it gets mature enough to lead an independent life.
If the environmental situations get terrible enough, they're possibly replaced by sexual reproduction, which will increase the genetic version in the population.
Sometimes hydra can reproduce sexually by developing testis and ovaries and fertilization then takes place in water. But it rarely happens. Most of the time hydra develops by budding.

Note:
It is a type of unequal division in which the progeny is smaller than the parent body.
In plants, the budding is referred to as grafting in which a part of a plant such as a stem can be used to produce new plants. It is used in day to day practices.