India told to set up Euro hubs in Switzerland

The French-speaking region of Western Switzerland has been promoting foreign investments by offering 10-year tax holiday for firms setting up manufacturing or contract manufacturing facilities there.

Speaking at a meeting organised by the Federation of Indian Exporters Association in Chennai, India representative of the Development Economic Western Switzerland Ravi Chaudhry said a new initiative by DEWS offered attractive benefits to Indian companies for setting up a 'Euro-hub' or a global holding company in that region.

The region comprises Swiss cantons of Vaud, Valais and Neuchatel.

Outlining the new initiatives by the DEWS, he said this part of Switzerland was particularly suitable for

Indian companies because of its easy access to surrounding markets in France, Germany, Austria, Italy and the new EU countries.

"Many Indian companies have already established global trading and holding companies, contract manufacturing companies, IPR (intellectual property rights) holding companies, and biotech and software marketing & servicing companies with DEWS assistance," Chaudhry said.

On the tax structure, he said companies setting up manufacturing facilities or contract manufacturing units get complete tax holiday for 10 years. International trading companies were taxed in the range of 5 to 11 per cent.

"The region, traditionally considered the watch-valley of the world, is now well established as the bio-valley and IT-hub of Europe," Chaudhry said.