RESIGNATION OF INDIAN CABINET CONFIRMED BY DELHI AIDE

All 60 members of Prime Minister Indira Gandhi's Cabinet and Council of Ministers, except Mrs. Gandhi herself, have resigned, one of the resigning ministers confirmed today.

The move was an attempt to rescue the flagging fortunes of the ruling Congress Party and restore public confidence in the threeyear-old Gandhi regime, according to the minister.

An official announcement of the resignations was expected soon. Mrs. Gandhi was considered likely to accept most of them in a dramatic shake-up that follows the unexpected and resounding defeat of the Congress Party this month in two southern states where the party had never lost.

''It is a fact that everyone has resigned,'' said the minister, who asked not to be named. ''It is aimed at an overhaul of the administration.''

Organizational Decay

A number of chief ministers in Congress-controlled states were also considered likely to quit, and four of the party's general secretaries stepped down Thursday in the wake of the reversals in assembly elections in the states of Andhra Pradesh and Karnataka.

The defeats on Jan. 5 spotlighted what is widely regarded as the organizational decay of the once-robust party that presided over the birth of the Indian republic and that has ruled for almost all of its 35-year history. They also drew attention to the widespread reputation of many Congress officeholders for mismanagement and corruption.