I know how induced emf is produced and about Faraday law. But I am actually confused what we mean by induced emf? Is it the same example of emf in batteries where it is potential difference between two points?
Yes. EMF is EMF. This is how physics works: we look around, and we find ways to take two apparently dissimilar phenomenon, like batteries and electric generators, and describe their behavior in a unified way.
So EMF is EMF (even when we call it "voltage")*, and current is current (even if we're reading old texts that call it "intensity", or DIY blogs that call it "amperage"). Force is force**, distance is distance***, etc.
* Unless you're studying medicine -- then it's an unfortunate and mysterious heart ailment.
** Unless you're preparing a "use of force" complaint against a police officer.
*** Note that I refrain here from any more cross-discipline vocabulary silliness. Relationship advice columns aside...
They are the same concept. Generally, EMF is the electromotive force. Break it down, its the force that makes electricity "move". We call any phenomena that create a current EMF's. Batteries create a chemical EMF, and changing magnetic field (via faraday's law) create induced EMF's. In general, this is the same as the voltage (from an electrical engineering standpoint), but typically there is internal resistance to factor in before you can technically call it the "voltage".
There is some potentially confusing subtlety surrounding the term emf which is easily glossed over. It is tangled up with the concept of a conservative force. I discussed it at some length with the author of this old question: