1. A method implementable on a computing device for categorizing one or more blocks of an image, the method comprising: computing a membership value of each of the one or more blocks for each of one or more categories based on a set of parameters associated with each of the one or more blocks, wherein the one or more categories comprise at least an image category; categorizing each of the one or more blocks in the one or more categories based on the membership value; compressing blocks categorized under the image category to achieve a first compression ratio; comparing the first compression ratio with a reference compression ratio to generate a reference signal, wherein the reference signal corresponds to a difference between the first compression ratio and the reference compression ratio; modifying a category of a set of blocks to the image category based on the reference signal and the membership value such that the number of blocks categorized under the image category increases, wherein the category is different from the image category, wherein a predefined number of blocks, categorized in the category, are included in the set of blocks, and wherein the predefined number of blocks is determined based on the reference signal.