What should be the standard practice for workspace usage?
Also in case we import a project into eclipse what workspace should I select ideally?
This seems to be a basic thing but I want clarity on the same.
There is no definite answer to this as it's just a workflow preference. However the way that I handle this is that if I have on big thing I am working on which consists of multiple projects, I keep that all in one workspace, this can be necessary if you build with eclipse (rather than Maven), and they are dependencies for each other. If they are entirely separate things, then they have their own.
But no one can give you a 'correct' answer, as it is just what suits you. If you have too many things open at once in Eclipse can make it a little slow but if it is a project you are working on by yourself it is unlikely to be that big of an issue.