Sometimes the potatoes kept in a basket during the late rainy season start giving out small shoots. Would you call it germination? Give reason in support of your answer.

No, this is not called germination. It is an example of vegetative propagation. Germination is the process of formation of a seedling developed from the embryo. In this case, the potato tuber is a modified stem, and the small shoots (called sprouts or eyes) grow directly from it without involving seeds.