"Australia are favourites because they have psychological advantage of having beaten India in all the matches the two sides have played in all formats in recent times. I understand that World Cup is a different ball game altogether but I still feel that Australia have got the advantage," Gavaskar said.
"My heart says India but my mind says Australia are the favourites. If Australia bats first then India will struggle. India can win only in case they bat first and put up a big total, say 290-300," he added.
"Indian team does not have a leg-spinner. Australians will not be facing a leg-spinner. R Ashwin and Ravindra Jadeja are completely different bowlers. So, that will not be too much of an issue," he said.
The former Indian captain said that India will have to tackle both Steven Smith and Glenn Maxwell well if they want to win tomorrow.
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"Finch, Warner and Watson have not been in best of form. But Steven Smith has been consistent and Maxwell is the guy India will have to watch out for," Gavaskar told 'NDTV'.
"SCG suits Indians more than anywhere else in Australia. A batting pitch and a bit of spin, that should suit the Indians. I will put my money for India. I hope my favourite player Virat Kohli comes out and score a century," he said.
"Indian bowlers must be aggressive and attack in-form Steven Smith. Australia lacked a specialist fifth bowler and they struggled against Pakistan fast bowler Wahab Riaz. Indian batsmen should exploit their weakest bowler," he added.