Crossword Genius

Fearful state induced by a deity, I see (5)

Ross

I believe the answer is:

panic

I'm a little stuck... Click here to teach me more about this clue!

'fearful state induced' is the definition.
I can't tell whether this defines the answer.

'by a deity i see' is the wordplay.
'by' says to put letters next to each other.
'a deity' becomes 'pan' (Pan is an example).
'see' becomes 'C' (the word for the letter, according to Chambers).
'pan'+'i' is 'pani'.
'pani'+'c'='PANIC'

Can you help me to learn more?

(Other definitions for panic that I've seen before include "Losing one's head" , "Sudden, infectious fear" , "Agitation" , "Sudden feeling of terror" , "Overwhelming terror" .)

I've seen this clue in the Evening Standard.
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