Inclusive education in India, though advancing in policy, continues to stay uneven in practice, particularly in urban-rural contexts. The present qualitative study aims to explore how teachers and schools understand, enable, and drive inclusion across socioeconomic contexts. Five themes emerged using reflexive thematic analysis of semi-structured interviews and school observations. The first theme explored teachers' awareness of inclusive education from a systemic lens, wherein teachers' awareness was frequently policy-centric but fragmented, with limited translation into classroom decision-making. The second theme explored teacher functioning in an inclusive setup. Topics such as teachers' responsibilities, associated strain, improvisational adaptations, and emotional labour amidst limited mentorship and high caseloads were discussed. The third theme explored the provisions and infrastructure of inclusive education. It consisted of challenges in assistive technologies, accessible spaces, and specialist supports with pronounced rural shortfalls. The fourth theme explored topics on the essence of inclusion according to the schools, while the final theme explored the functioning of the school through collaborative routines, accommodations, and a strong psychosocial environment. Across these themes, teacher self-efficacy, attitudes towards disability, emotional demands of care, and stigma management emerged as key drivers of inclusive education. Findings highlight a policy-practice gap sustained by limited professional development, a lack of contextualized tools (such as universal design strategies and behavioural supports), and weak professional linkages. This study contributes to a grounded map of where and how inclusion falters and how psychologically informed supports can strengthen teachers and systems. Implications of this study include redesigning teacher education to promote reflective practice, embedding psychosocial supports in school routines and targeting rural capacity gaps through mobile expertise and shared services.