Iterative Development: It is basically a software development process where software development cycles (sprint and releases) are repeated until the final product is obtained. On the basis of feedback from customers or users, the product is again developed in cycles or releases and sprints i.e., adding new functionality in a repetitive manner.
Incremental Development: It is basically a software development process where development works are sliced into increments or pieces or portions. In this, the software is developed and delivered in pieces or increments and each piece has a complete set of functionalities. The increment can either be small or large, and each increment is coded and tested fully. After testing each increment, they all are integrated so that they work as a whole.