Talk to your child as much as possible. The more a child is exposed to language, the faster she will become comfortable with its rhythm and intonation. Narrate events throughout the day and ask your child to repeat new words you use. Repeat what the child says, showing him that you understand.
Read to your child and make reading interactive. Using books with big colorful pictures, ask him to point to specific items and talk about them. Use animal noises for pictures of animals and ask the child what the food in the picture tastes like.
Stimulate your child by giving him new experiences. If she has been reading a book about lions or elephants, take her to the zoo to see real lions and elephants. Go to the park to feed the ducks and talk about them. New experiences brings new vocabulary, and the child will soon have a range of words to describe things.
Let grammar mistakes stand, but don't use them yourself. Constantly correcting a child's grammar may make her less willing to speak. Lead by example, and repeat a sentence back to the child, using correct grammar. For example, if he says "We going to shops?" respond "Yes, we are going to the shops." He will learn from you and will eventually form proper sentences.
Ask your child questions, encouraging her to process language and information. If you have been to the zoo, ask which animals she saw. You can start with closed questions such as, "Did we see a monkey?" before moving on to open-ended questions like "Which was your favorite animal?"