Morally speaking[1] the Axiom of Foundation we can aid us in showing that for each positive natural number $m$ (existing in the meta-theory) and every set $x$ the set $$S^{(m)} ( x ) = \overbrace{S ( \cdots ( S}^{m\text{ times}} ( x ) ) \cdots )$$ is distinct from $x$. We first show by induction (I guess in the meta-theory) that $x \in S^{(m)}(x)$ for all $m \geq 1$, and then note that by Foundation $x \notin x$, and so each $S^{(m)}(x)$ must differ from $x$.
It then follows that the sets $\varnothing$, $S(\varnothing)$, $S ( S ( \varnothing ) )$, $\ldots$ are pairwise distinct. Since your inductive set $X$ must contain all of these, that set must be infinite (at least from the point-of-view of the meta-theory).
Added: An alternative approach, done through the exercises in Ch.1 of Jech's Set Theory, is to define a set $N$ to be the smallest inductive set (i.e., the intersection of all inductive subsets of some given inductive set), and then show that the elements of $N$ have certain properties that then imply the infiniteness (non-finiteness?) of $N$. It is somewhat tedious (since it avoids overtly mentioning ordinals, and in particular $\omega$), but is also clean and without circularity. Once ordinals are defined, it turns out that $N$ is actually $\omega$ (what a surprise!).
[1] By which I mean that there may be inaccuracies in what I am about to say, but the gist is pretty close to the actual truth. I thank Prof. Sy David Friedman for putting this phrasing into my mathematical vocabulary.