Thx for pointing this out @ErmesT - a very interesting idea indeed!
@LovePathak28 if you will start a post on that matter, I will gladly give you all the support I can. In fact, quite a big chunk of the LG points I earned on my way to level 10 were related to categories, most of them adding a better suited category to POIs 
This kind of initiative is also very much related to a “campaign” I started several years ago: Local Guides Clean The Map (#LGCTM). The original post has almost 500 likes, and more than 500 comments, so feel free to check that out and make something similar about your idea. As you will see, I have also used that post to make lists of related posts, as a kind of overview (people than simply need to bookmark 1 single post).
It’s also funny that @ErmesT mentions problems with newspaper shops. In Dutch we have a problem with those too: the category name in Dutch includes the word for magazines (weekly or monthly publications) but not the word for newspaper (daily). The category name in Dutch is technically correct, but in the area where I live (Dutch speaking part of Belgium) people refer to these shops in spoken language as ‘newspaper shop’… the result is that quite a few are labeled e.g. ‘newspaper editor’.
If you start a post here, please do make sure to take into account the translations of the category names into local languages, as the problem is sometimes caused by incorrect or suboptimal translations (where the English term is fine).
And one final piece of advice: provide lots of details and don’t give up easily. I can testify personally that the Maps team does notice (y)our efforts and sometimes even take action to remedy the problem, as you can read in this example.