Any policy framed by the Government would have teachers, experienced senior faculty from various departments, prinicipals etc who would be vital to give ideas and point out the direction to the Ministry of education.
I think the main problems would come not because of lack of advise or inputs from teachers but due to ignorance or willful lack of passion on the part of some of the key policy makers and finance allocators for education.
So, Yes, teachers are vital to improve the education system. The teaching community also should be aware of the enormous responsibility on their shoulders and hence should give suggestions or chart out plans keeping the current concepts, competition, technology and also the future career and job prospectus of today's students.
Once this is done, the Government should make every effort to implement most of the well thought plans.
Related to the topic, I would like to share some simple but amazing thoughts that I read on Forbes India school ranking, wherein the catch phrase is ' A happy student is the mark of a great institution'.
(http://www.forbesindia.com/printcontent/49461). Here, I found that in school ranking, inputs of parents and teachers are also considered. It would be a good idea to consider using parents and student views/suggestions on how to improve Indian education system.