Gave an interview and HR's response left me shocked

Hi everybody, I completed my B.Tech in CS, worked in non-tech for 16 months, then did my Master’s abroad while working part-time as a developer for 2 years. I moved back to India due to family reasons and have been job searching since. Recently, I interviewed at a company through a reference. The technical round didn’t go well since they also asked a few production-level questions I had no experience with. I WASN'T expecting a call, but they offered to take me if I joined an external training institute simultaneously post which I'd have to clear their assessment. The CTC was lower than a fresher’s, so I asked if they could reconsider. Then the senior HR called and said: "How are you expecting more with 0 knowledge? You have 0 skills. The tech HR rated your interview as average, and we didn’t even want to take you. He was kind enough to give you this chance. For someone who has no basic skills, it’s a waste of cost incurred from our side until you are working at a production level. You take it or I’ll drop your name. Don’t waste our time." (in a very rude tone). For a moment, I lost whatever confidence I had. But then I reminded myself of the interviews I did clear (didn't go forward due to poor packages), including one at a renowned company that rejected me only due to my B.Tech pass-out year not meeting their criteria. So I believe I atleast have the basic skills she said I didn't. I’ll use this as motivation to improve, but is this kind of behavior normal? Has anyone faced something similar? Also, job searching here has been brutal. So many backdoor hires happening in front of me. How do you even secure a job in this market?