Let' clarify the concept on a specific example.
We know that $$1+2+\cdots +n=\frac{n(n+1)}2.\tag 1$$
Prove this statement a fake naive way:
- Observe that $(1)$ is true for $n=2$. Indeed, $$3=1+2=\frac {2\times 3}2.\tag 2$$
- Observe that you can prove the same for $n=3$ based on $(2)$ now: $$6=1+2+3=\frac{2\times3}2+3=\frac{2\times3+2\times3}2=\frac{3\times 4}{2}.\tag 3$$
- You do it once again for $1+2+3+4$ based on $(3)$:
$$1+2+3+4=(1+2+3)+4=$$$$=\frac{3\times 4}2+4=\frac{3\times4+2\times 4}2=\frac{4\times5}2.$$
- You notice the pattern now and try to do it in general:
$$1+2+\cdots n+n+1=\frac{n(n+1)}2+n+1=$$
$$=\frac{n(n+1)+2(n+1)}2=\frac{(n+1)(n+2)}2.$$
You generalize the idea now: If I could do it for $2$ and if I could do it for $n+1$ knowing that it is true for $n$ then it will be true for any natural number.
One more step ahead and you say that if this principle worked for the property $$1+2+\cdots +n=\frac{n(n+1)}{2}$$ then it will work for any property $P(n)$.
We've seen that every proof based on the principle of mathematical induction could be done step by step for any $n$. In that case you do not assume that the statement is true for an $n$ but you directly prove that. So, mathematical induction is a practical simplification of a special kind of inductive proof as long as we talk about the truth of a statement for finitely many $n$'s. The principle of mathematical induction becomes an unproven axiom if it comes to the statement that something is true for all $n$.