Your little darling is already probably blurting out things -- your name, mama, and papa. Now you can expect your baby to take one more step in the communication domain and start to use body language to communicate with you. Your baby is likely to communicate through gestures now. Simple ones such as pointing, shaking their head "no," and waving bye-bye all demonstrate their ability to understand, and respond to speech -- a big milestone.
What you need to know
One way to determine if everything is ok is to look for responses. For example, you will know your baby understands what you say when you ask "Where’s Dadi?” and your little one looks at the person. Of course the person needs to be in visible range. Another cue that all is ok is that your baby momentarily stops doing whatever he is doing when you say, “No” and wag your finger.