What does the cryptic crossword clue "Indicator by the way in initial letters? (8)" mean?

This cryptic clue uses wordplay to arrive at the answer. Visit the page for progressive hints — definition, wordplay type, and a full step-by-step explanation.

Indicator by the way in initial letters? (8)

Telegraph Prize Cryptic #3136 | 7 Down | 2021-11-28 flower

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