No.
The steps of proof by induction go:
Base Step: Show that there is $n_0$ where this is true.
If $n_0 = 1$, you need to show that $ab^1a^{-1} = (aba^{-1})^{1}$.
You did not show that.
(As $g^1 = g$ by definition: $ab^{1}a^{-1} = aba^{-1} = (aba^{-1})^1$.)
You do NOT have to show that it remains true for $n_0 + 1$. You can but that is will be redundant when you do the induction step.
Inductions Step: Prove that if the statement is true for $n$ then it will be true for $n+1$.
It's not enough to prove that it doesn't "become false". You must prove it is true $n+1$ assuming it true for $n$.
You state $ab^{n + 1}a^{-1} = (ab^na^{-1})(aba^{-1}) = ab^n(a^{-1}a)ba^{-1} = ab^{n+1}a^{-1}$
which means ... $ab^{n+1}a^{-1} = ab^{n+1} a^{-1}$??? What you started with is equal to itself. That ... gets us nowhere.
And it doesn't matter if that is true.
We need to prove that $ab^{n+1}a^{-1} = (aba^{-1})^{n+1}$. And we are allowed to assume that $ab^na^{-1} = (aba^{-1})^n$ in order to prove that.
So to prove it:
$ab^{n+1}a^{-1} = ab^n*ba^{-1} = ab^n*e*ba^{-1} = ab^n*(a^{-1}a)*ba^{-1}$.
$= (ab^na^{-1})aba^{-1}$.
NOW we were allowed to assume that $ab^na^{-1} = (aba^{-1})^{n}$ for that particular $n$. We don't (at this point) know which values it is true for. We did know it is true for $n=n_0$ in the base step, but we don't use that here. We are simply trying to show that if it is true for some value $n$, then it will follow that it is true for $n+1$.
So we are assuming it is true for $n$. But we don't know if it is true for any other values.
So $(ab^na^{-1}) = (aba^{-1})^n$ can be assumed.
So $ab^{n+1}a^{-1} = (ab^na^{-1})aba^{-1}$
$= (aba^{-1})^n(aba^{-1})$
$= (aba^{-1})^{n+1}$.
That is the result we had to prove. .... IF we assume the result was true for that particular $n$.
.....
Now, that is enough to say we are done. The unspoken implication of the proof is this:
We have proven:
1) $(ab^1a^{-1}) = (aba^{-1})^1$
2) IF $ab^na^{-1}=(aba^{-1})^n$ THEN $ab^{n+1}a^{-1} = (aba^{-1})^{n+1}$.
We can apply 2) to 1) and conclude:
3a) $ab^2a^{-1} = (aba^{-1})^2$
(we did NOT have to prove it directly)
And we can apply 2) to 3a) and conclude:
3b) $ab^3a^{-1} = (aba^{-1})^3$
And we can apply 2) to 3b) ad conclude:
3c) $ab^4a^{-1} = (aba^{-1})^4$
And so on....
We don't need to state these "and so on" statements every single time we do a proof by induction. We assume that if we are given:
1) $P(1)$ is true.
2) IF $P(n)$ is true for some $n$ then it will be true for $P(n+1)$
we can conclude
3) $P(n)$ is true for all $n \in \mathbb N$.
We accept this as a basic logical truism.
P.S.
I think you made some weird typos.
You typed $ab^2a^{-1} = (aba^{-1})^1(aba^{-1})$ which .... we have no explanation for. And we conclude $ab^2a^{-1}=.... =ab^2a{-1}$. Which is ... where we started. And you never say anything about $(aba_{-1})^2$ which was the entire point.
You do the exact same thing later.
You typed $ab^{n+1}a^{-1} = (ab^na^{-1})^1(aba^{-1})$ which .... we have no explanation for. And we conclude $ab^{n+1}a^{-1}=.... =ab^{n+1}a{-1}$. Which is ... where we started. And you never say anything about $(aba_{-1})^n$ which was the entire point.
I think you meant to type:
$(aba^{-1})^2 = (aba^{-1})(aba^{-1}) = abeba^{-1} = ab^2a^{-1}$
And
$(aba^{-1})^{n+1} =(aba^{-1})^n(aba^{-1}) = (ab^na^{-1})(aba^{-1}) ab^n(a^{-1}a)ba^{-1} = ab^{n+1}a^{-1}$.