India were 248 for six at stumps against a disciplined Australia, trailing by 52 runs in their first innings.
"Australia hold the upper hand because they have taken six major wickets," Gavaskar told 'NDTV'.
Ravindra Jadeja and Wriddhiman Saha were the unbeaten batsmen at close of play.
"Sure Jadeja can hit the ball, Saha got a hundred in the previous game, but Australia have the second new ball in their hands and just about three or four overs old, so tomorrow morning it's going to be very, very difficult (for India).
The batting great is miffed with Karun Nair's outing on the field, adding to his misery with the bat. He has so far managed just 54 runs in his last four innings.
"It it will be tough for him because at the end of the day the team management, selection committee want you to do well in your major skill, which is batting, and they are also going to look into his fielding.
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