Cyclically adjusted data is used by many countries now a days so that to remove the impact of cyclical fluctuation of business cycle on fiscal deficit.
I am by no means an expert on the Indian economy; however, I thought the following might be helpful:
When I see cyclically adjusted data it is usually due to seasonality rather than longer-term fluctuations that might be associated with a business cycle or perceptions related to it. For example, this is especially significant today since it is so close to the Income Tax filing deadline in the US. Each year, this seasonality influences the monetary flows to the US government.
Some things like the GDP Gap might be useful in a different context because it is heavily influenced by deviations from full employment.