Imagine your child reading, but with all wrong sounds and incorrect  pronunciation. What will it sound like? How will it help them? In this case, Phonics plays a very important role in developing your child’s reading skills. The idea behind phonics is that letters represent sound of spoken language and there is a logical relationship between written letters and spoken sounds. Phonics helps children learn the relationship between the letters of written language and the sounds of spoken language.
Phonics forms the basis of communication skills which needs to be developed and honed over the years. The first step always begins at home;

1. Start with observing how your child recognizes the alphabets. Letter recognition od the most basic skill you need to check for in your child.   
2. The second step is observing if your child is aware of the sounds being every letter.

The Knowledge of these sounds is what we call Phonics. It is all about sounds and understanding sounds of each letter, vowel, short words, long words, blending words, sight words. There are 42 letter sounds which are the building blocks, that children, with the right tools, use to decode the English language. When reading a word, they recognize the letters and blend together the respective sounds. When writing a word they identify the sounds and write down the corresponding letters. These skills are called blending and segmenting. Children are taught, for example, that the letter e represents the sound /ee/ and that it is the first letter in words such as egg, elephant, and eagle.

When children learn that there are predictable relationships between sounds and letters, they start applying these relationships to both familiar and unfamiliar words and that's how they begin to read fluently. So, if Phonics is practiced at an early stage, then your child will be able to pronounce letters and words correctly and their reading and speaking skills will improve day by day.
As a parent, you need to keenly observe what stage your child is at. I always recommend parents that reading to their children in the best way to help them get acquainted with letters and sounds. So start today, read and look at helping your child develop phonics as you will be ensuring that they grow up to become confident communicators.