Trying to import an .xml file of 2GB give memory error(java heap error)

Steps:
1. While trying to test demo dashboard with customer data. I tried with a 2GB xml(benefitfocus_backup_20090508.xml) file.

Result:
1. My guess is that upgrade process went fine and its during the re-indexing the memory error happened.
2. JIRA fail with " Error exporting data: java.lang.OutOfMemoryError: Java heap space"
3. Log and the XML file is attached.

Expected:
1. No memory error should happen.
2. If for large data restore some memory settings need to be change, they should be documented.

The XML data file at placed at smb://filehost/scratch/6month/vbharara/JRA-17319