How to fix eclipse outOfMemory or permgen space issue?

While running applicatiom from eclipse, most of the time we used to get the error OutOfMemoryError: Permgen space.

To fix this we have to increase the size of XXMaxPermSize in eclipse.ini file of eclipse installation folder.

--launcher.defaultAction
openFile
--launcher.XXMaxPermSize
256M
-showsplash
org.eclipse.platform
--launcher.XXMaxPermSize
256m