There exist many actors within the realm of education policy planning and implementation, namely: the policy makers; the national, local and regional institutions engaged in the dissemination and interpretation of these policies; and the educational institutions that implement these policies at the ground level (schools). While schools are largely perceived to be at the receiving end of these policies, they are also held most accountable for any failures in effective implementation. The systemic factors, including: differences in local and regional institutions; the organizations that make decisions around functions, accountability and resource allocation; and the immediate environments surrounding the schools, are often ignored. This paper highlights institutional differences that affect policy implementation in two mega cities of India, namely, Mumbai and Delhi. The paper suggests that policy reshaping rarely considers the feedback from the bottom up; rather, policies are revised largely based on global and national agenda shifts rather than in response to on-the-ground impact of their implementation. The paper argues for a more reciprocal relationship between policy and practice, identifying the need for practice to influence policy in a mutually reinforcing process. Further, the paper argues that innovation at the local level of policy implementation is a critical mechanism by which such a reciprocal relationship can be established. (Contains 2 figures, 1 table and 4 endnotes.)