How to create reading habits in children

Create a separate reading area--Ideally a quiet and comfortable area where the child would like to spend time. Try to provide an area which is near your collection of books.
Give him access to books -- Set up a book collection shelf at home from where he can pick and read items of his choice.
Set aside time for reading-- Allocate a period of time, maybe 30 minute or so, every day, for your children to spend on reading at the allotted area.
Encourage reading one good book -- Out of the allotted reading time set aside 10-15 minutes to read one good book that would take many days to complete.
Spend reading time with your child -- Whenever possible spend time reading with him and then discussing what you read.
Encourage family reading -- Schedule a period of time when all members of the family can meet and read from their favorite books.
Make reading fun -- Read to him and act out portions to make the experience lively. This is sure to arouse greater interest.
Display books in your home -- This will give your children the impression that books have an important role in the household.
Make him join a library -- Libraries are great places for reading and writing.

What to Avoid

Nagging -- Pressurizing and hounding a child will only increase his resistance.
Bribing -- Bribing can produce negative results. Instead present him with a book and praises on his completing a reading assignment successfully.
Judging-- Constant judging will take the pleasure out of reading and he will soon lose interest.
Criticizing his choice-- If he is taking the initiative to read books of his choice, encourage him, even if he is choosing books that are too light and easy to read. In time he will go for more serious options.
Setting tough goals --Don’t expect great things in short time frames. Encourage him gently, instead.