Most private schools in India follow the Alphabet-Spelling method to teach reading in English. This approach bypasses letter-sound correspondences and focuses on rote memorization and sight-word recognition. In an effort to provide students with more recent evidence-based practices in reading instruction, this study examined how phonics-based instruction related with early English literacy outcomes for students in kindergarten. Our sample consisted of 627 students attending a private middle-cost school in Mumbai, India where the language of instruction was English. Students were tested for early literacy skills in kindergarten using the DIBELSNext benchmarking measures. We compared groups of students who received no phonics (n = 165) to students who received one year of phonics (n = 234) and students who received two years of phonics (n = 228) respectively. Our results suggested that students who received both one and two years of phonics instruction in preschool significantly outperformed those who did not receive any phonics instruction on all the literacy skills assessed. Moreover, the incidence of students being at-risk for reading difficulties reduced significantly with an increase in years of phonics instruction. Implications for reading research, practice, and policy in the Indian context are discussed.