I am building a News Application in Android. I have to create a filter for category. I want to create a category component as given in the below image

Since your question is tagged with Material Design, i guess you're looking for the appropriate ui-element:

It's called Chip, see https://material.io/components/chips

Please note it's looking different depending on Material Design version.

Try this, You can adapt with your own logic

MainActivity.kt

override fun onCreate(savedInstanceState: Bundle?) {
        super.onCreate(savedInstanceState)
        setContentView(R.layout.activity_main)

        setupCategories()
}

fun setupCategories() {
    val layoutInflater = LayoutInflater.from(this)
    val chipGroup = findViewById<ChipGroup>(R.id.chip_group)
    chipGroup.removeAllViews()

    val categories = listOf("All", " World", "️ Game", " Technologie")

    categories.forEachIndexed { index, category ->
        val chip = layoutInflater.inflate(R.layout.chip_item, chipGroup, false) as Chip
        chip.id = View.generateViewId()
        chip.text = category
        chip.tag = index
        
        chipGroup.addView(chip)
    }
    
    chipGroup.setOnCheckedChangeListener { group, checkedId -> 
        val chip = group.findViewById<Chip>(checkedId)
        val checkedIndex = chip.tag as Int
        val category = categories[checkedIndex]
    }
}

activity_main.xml

<LinearLayout
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    android:orientation="vertical">

    <com.google.android.material.chip.ChipGroup
        android:id="@+id/chip_group"
        android:layout_width="match_parent"
        android:layout_height="wrap_content"
        app:singleLine="true"
        app:singleSelection="true" />

</LinearLayout>

chip_item.xml

<?xml version="1.0" encoding="utf-8"?>
<layout xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:app="http://schemas.android.com/apk/res-auto"
    xmlns:tools="http://schemas.android.com/tools">

    <com.google.android.material.chip.Chip
        style="@style/Widget.MaterialComponents.Chip.Choice"
        android:layout_width="wrap_content"
        android:layout_height="wrap_content"
        app:ensureMinTouchTargetSize="false"
        tools:text="Category" />
</layout>