I hold an Indian passport and since I have a day layover in Amsterdam I wanted to apply for a transit visa. Is this possible?
You can obviously apply for a visa but there is no specific easier-to-get “transit” visa that would allow you to do that.
If you need or want to leave the transit lounge of the airport, you need a regular Schengen visa, with all the same costs and requirements as if you would come for a short touristic stay or any other short-term visit. And you must apply for that visa a few weeks in advance, from your usual place of residence. There are some very limited exceptions but it's generally impossible to get one at the airport or on the road.