This chapter considers how the institutional and wider social and policy contexts shape the scope for teacher agency towards the achievement of Sustainable Development Goal (SDG)#4 of providing equitable and inclusive education. Although teachers are called upon to act as agents of change, neoliberal policies often limit the ways in which their expertise can be used not only to enrich education but also to address the social and emotional needs and wellbeing of students—an invaluable aim of inclusive education. Comparing Swedish and Indian policy environments, the chapter discusses how two, seemingly different contexts, create similar barriers to teachers work in supporting all learners. Drawing on international studies and reports, the chapter considers how policies for teaching and teacher education shape teachers’ professional identity and actions, arguing that neoliberal policies restrain teachers’ capacity to exercise their agency for inclusion.